Local Education Provider Workforce Housing

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO BILLPAPER INTRODUCED SENATE BILL 26-139 LLS NO. 26-0320.02 Pierce Lively x2059 SENATE SPONSORSHIP Bridges and Roberts, HOUSE SPONSORSHIP Stewart K. and Lukens, Senate Committees House Committees Education A BILL FOR AN ACT CONCERNING FUNDING FOR THE CREATION OF LOCAL EDUCATION PROVIDER WORKFORCE HOUSING BY LOCAL EDUCATION PROVIDERS.

Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) Section 4 of the bill creates the "Building Excellent Teacher and Employee Residences Act" (BETER). BETER creates a new school district financing opportunity for the development of housing for teachers and other school district and public school staff (workforce housing). The bill creates an application process by which a school district Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law.

(applicant) may apply to the workforce housing assistance board (board) for financial assistance in connection with developing a workforce housing project. The division of public school capital construction assistance within the department of education (division of public school capital construction assistance) and the division of housing within the department of local affairs (division of housing) shall assist applicants in identifying workforce housing needs and in submitting applications to the board. No later than June 1, the board, with the support of the division of housing and division of public school capital construction assistance, shall review these applications according to guidelines that the board establishes and creates an initial prioritized list of workforce housing projects to award financial assistance. The board shall submit this initial prioritized list to the state board of education and the state housing board for comment. No later than July 15, the board shall determine a final prioritized list of projects for which the board will provide financial assistance. The board may only award financial assistance to an applicant for a workforce housing project if: ! The board determines that the project complies with affordability, tenancy, and environmental and building requirements established by the board; and ! Unless the board grants an exemption, the applicant provides matching money in an amount at least equal to the portion of the total development cost of the workforce housing project that can be financed with and supported by net operating income generated from the project. The board may only provide an amount of financial assistance to an applicant for a workforce housing project that is equal to or less than the portion of the amount of the workforce housing project's total development cost that exceeds the amount that the applicant can finance and support with the workforce housing project's net operating income. The board may provide financial assistance to an applicant for a workforce housing project by awarding matching grants that are paid out of the workforce housing assistance fund (fund) or by instructing the state treasurer to enter into a financed purchase of an asset or certificate of participation agreement. In this context, the financed purchase of an asset or certificate of participation agreement means a lease-purchase agreement between the state treasurer and a trustee pursuant to which: ! The state makes rental payments that include principal and interest components; and ! The trustee, pursuant to an indenture of trust, creates certificates of participation evidencing undivided interests in the payments made by the state under the lease-purchase agreement. Any payment obligation of the state as part of a financed purchase of an asset or certificate of participation agreement is subject to annual appropriation and does not create an indebtedness or multiple fiscal year financial obligation of the state within the meaning of any provision of the state constitution or state statute. If the state treasurer enters into a financed purchase of an asset or certificate of participation agreement, the board shall enter into a sub-financed purchase of an asset or certificate of participation agreement for the workforce housing project with the applicant that will use the workforce housing. The sub-financed purchase of an asset or certificate of participation agreement must: ! Require the applicant to perform for the state all duties of the state to maintain and operate the workforce housing project and to make periodic rental payments to the state or otherwise make a payment to the state in the amount of the matching money required for the award of financial assistance; and ! Provide for the transfer of ownership of the workforce housing from the state to the applicant upon the fulfillment of both the state's obligations under the financed purchase of an asset or certificate of participation agreement and the applicant's obligations under the sub-financed purchase of an asset or certificate of participation agreement. The board is required to present an annual written report to the education and finance committees of the house of representatives and the senate regarding the provision of financial assistance to applicants. The board is also required to post a similar report on the department of education's website. Sections 5, 6, 7, and 8 establish the funding mechanism for the fund. The state constitution restricts the use of the principal of the public school fund and only allows for the use of public school fund interest and income. Sections 6 and 7 clarify that public school fund interest and income includes realized and unrealized gains and directs the transfer of the lesser of an amount of interest and income equal to 2.5% of the total value of the public school fund after making currently required interest and income distributions from the public school fund or $40 million to the state public school fund. Section 5 creates the public school fund income stabilization account within the public school fund and directs the treasurer to credit the difference between the amount transferred from the public school fund to the state public school fund as described in section 6 and $40 million to the account. The uses of the account are limited to supplementing payment from or the principal of the public school fund. Section 8 directs the state treasurer to annually transfer an amount equal to the amount transferred from the public school fund to the state public school fund pursuant to section 6 from the state education fund to the fund.

Section 1 expands school district powers concerning the development and financing of workforce housing. Specifically, section 1 allows for school districts to: ! Acquire, construct, improve, own, operate, lease, and lease-purchase workforce housing; ! Issue bonds to finance workforce housing; ! Enter into contracts with public entities and private parties to finance workforce housing; and ! Create enterprises for the acquisition, construction, improvement, ownership, operation, leasing, and lease-purchasing of workforce housing. Section 1 also describes the characteristics of bonds issued by school district-created enterprises for the purpose of financing workforce housing. Section 2 adds certain school district and school district enterprise lease agreements, lease-purchase agreements, and revenue bonds entered into or issued in connection with financing workforce housing to the state intercept program. Sections 3, 9, and 10 grant the division of public school capital construction assistance, the state treasurer, and the division of housing the powers necessary to implement the bill.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 22-32-124.7 as follows: 22-32-124.7. Workforce housing - school district powers and duties - definitions. (1) IN ADDITION TO ANY OTHER POWERS AND DUTIES, THE BOARD OF EDUCATION MAY:

(a) ACQUIRE, CONSTRUCT, IMPROVE, OWN, OPERATE, LEASE, AND LEASE-PURCHASE WORKFORCE HOUSING;

(b) ISSUE GENERAL OBLIGATION BONDS OR NON-ENTERPRISE REVENUE BONDS TO PAY THE COSTS OF ACQUIRING, CONSTRUCTING, IMPROVING, OWNING, OPERATING, LEASING, AND LEASE-PURCHASING WORKFORCE HOUSING;

(c) ENTER INTO CONTRACTS WITH PUBLIC ENTITIES AND PRIVATE PARTIES, INCLUDING PUBLIC-PUBLIC AND PUBLIC-PRIVATE PARTNERSHIPS, FOR THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, OWNERSHIP, OPERATION, LEASING, AND LEASE-PURCHASING OF WORKFORCE HOUSING;

AND

(d) CREATE AN ENTERPRISE FOR THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, OWNERSHIP, OPERATION, LEASE-PURCHASING OF WORKFORCE HOUSING.

LE A S I N G , AND

(2) (a) AN ENTERPRISE CREATED BY A BOARD OF EDUCATION PURSUANT TO THIS SECTION HAS THE POWERS AND DUTIES DESCRIBED IN SUBSECTIONS (1)(a) AND (1)(c) OF THIS SECTION.

(b) (I) (A) AN ENTERPRISE CREATED PURSUANT TO THIS SUBSECTION (2) MAY ISSUE BONDS TO ACCOMPLISH OR FURTHER ANY OF ITS POWERS OR DUTIES RELATING TO WORKFORCE HOUSING.

(B) BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) MUST BE ISSUED PURSUANT TO RESOLUTION OF THE ENTERPRISE'S BOARD, ARE PAYABLE SOLELY FROM ALL OR A SPECIFIED PORTION OF THE REVENUES OR ASSETS OF THE ENTERPRISE OR THE REVENUES AND ASSETS OF THE WORKFORCE HOUSING COMPONENT OF A PUBLIC-PRIVATE PARTNERSHIP, AND MAY BE SECURED BY A MORTGAGE, DEED OF TRUST, PLEDGE, OTHER SECURITY INTEREST IN OR ENCUMBRANCE ON ANY OF THE REVENUE, PROPERTY, OR ASSETS OF THE ENTERPRISE OR THE REVENUE, PROPERTY, OR ASSETS OF THE WORKFORCE HOUSING COMPONENT OF A PUBLIC-PRIVATE PARTNERSHIP.

(C) AS PROVIDED IN THE RESOLUTION OF THE ENTERPRISE UNDER WHICH BONDS ARE AUTHORIZED TO BE ISSUED OR AS PROVIDED IN A TRUST INDENTURE BETWEEN THE ENTERPRISE AND ANY COMMERCIAL BANK OR TRUST COMPANY HAVING FULL TRUST POWERS: BONDS MAY BE EXECUTED AND DELIVERED BY AN ENTERPRISE CREATED PURSUANT TO THIS SUBSECTION (2) AT THE TIMES; MAY BE IN THE FORM AND DENOMINATIONS AND INCLUDE THE TERMS AND MATURITIES; MAY BE SUBJECT TO OPTIONAL OR MANDATORY REDEMPTION PRIOR TO MATURITY WITH OR WITHOUT A PREMIUM; MAY BE IN FULLY REGISTERED FORM OR BEARER FORM REGISTRABLE AS TO PRINCIPAL OR INTEREST OR BOTH; MAY BE PAYABLE IN SUCH INSTALLMENTS AND AT THE TIMES NOT EXCEEDING FORTY-FIVE YEARS FROM THE DATE THEREOF; MAY BE PAYABLE AT THE PLACE WHETHER WITHIN OR WITHOUT THE STATE OR ELECTRONICALLY; MAY BEAR FIXED OR VARIABLE INTEREST; MAY BE SUBJECT TO PURCHASE AT THE OPTION OF THE HOLDER OR THE ENTERPRISE; MAY BE EVIDENCED IN SUCH MANNER; MAY BE EXECUTED BY THE OFFICERS OF THE ENTERPRISE, INCLUDING THE USE OF ONE OR MORE FACSIMILE SIGNATURES, WHICH MAY BE EITHER OF AN OFFICER OF THE ENTERPRISE OR OF AN AGENT AUTHENTICATING THE SAME; MAY BE IN THE FORM OF COUPON BONDS THAT HAVE ATTACHED INTEREST COUPONS BEARING A MANUAL OR FACSIMILE SIGNATURE OF AN OFFICER OF THE ENTERPRISE; AND MAY CONTAIN THE PROVISIONS NOT INCONSISTENT WITH THIS SUBSECTION (2)(b).

(D) BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) MAY BE SOLD AT PUBLIC OR PRIVATE SALE AT THE PRICE OR PRICES, IN THE MANNER, AND AT THE TIMES DETERMINED BY THE BOARD, AND THE ENTERPRISE SHALL PAY FEES, EXPENSES, AND COMMISSIONS THAT IT DEEMS NECESSARY OR ADVANTAGEOUS IN CONNECTION WITH THE SALE OF THE BONDS. THE POWER TO FIX THE DATE OF SALE OF THE BONDS, TO RECEIVE BIDS OR PROPOSALS, TO AWARD AND SELL BONDS, TO FIX INTEREST RATES, AND TO TAKE ALL OTHER ACTION NECESSARY TO SELL AND DELIVER THE BONDS MAY BE DELEGATED TO AN OFFICER OR AGENT OF THE ENTERPRISE.

(E) ANY OUTSTANDING BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) MAY BE REFUNDED BY THE ENTERPRISE PURSUANT TO ARTICLE 56 OF TITLE 11.

(F) ALL BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) AND ANY INTEREST COUPONS APPLICABLE TO THE BONDS ARE DECLARED TO BE NEGOTIABLE INSTRUMENTS.

(G) THE RESOLUTION OR TRUST INDENTURE AUTHORIZING THE ISSUANCE OF BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) MAY PLEDGE ALL OR A PORTION OF THE REVENUES AND ASSETS OF THE ENTERPRISE; MAY GRANT OR PROVIDE FOR A MORTGAGE, DEED OF TRUST, PLEDGE, OTHER SECURITY INTEREST IN OR ENCUMBRANCE ON ANY OF THE REVENUES, PROPERTY, OR ASSETS OF THE ENTERPRISE;

MAY PLEDGE ALL OR A PORTION OF THE RIGHTS OF THE ENTERPRISE TO IMPOSE AND RECEIVE RENT OR OTHER CHARGES IN ACCORDANCE WITH THE PROVISIONS OF THIS PART PROTECTING AND ENFORCING THE RIGHTS AND REMEDIES OF HOLDERS OF ANY OF THE BONDS THAT THE ENTERPRISE DEEMS APPROPRIATE; MAY SET FORTH THE RIGHTS AND REMEDIES OF THE HOLDERS OF ANY OF THE BONDS;

AND APPROPRIATE FOR THE SECURITY OF THE HOLDERS OF THE BONDS, INCLUDING PROVISIONS FOR LETTERS OF CREDIT, INSURANCE, STANDBY CREDIT AGREEMENTS, OR OTHER FORMS OF CREDIT ENSURING TIMELY PAYMENT OF THE BONDS, INCLUDING THE REDEMPTION PRICE OR THE PURCHASE PRICE.

MAY CONTAIN 1; MAY CONTAIN THE PROVISIONS FOR PROVISIONS THAT THE ENTERPRISE DEEMS

(H) ANY PLEDGE OF REVENUE, ASSETS, OR OTHER PROPERTY MADE BY AN ENTERPRISE CREATED PURSUANT TO THIS SUBSECTION (2) OR BY ANY PERSON OR GOVERNMENTAL UNIT WITH WHICH SUCH AN ENTERPRISE CONTRACTS IS VALID AND BINDING FROM THE TIME THE PLEDGE IS MADE.

THE PLEDGED REVENUES, ASSETS, OR PROPERTY ARE IMMEDIATELY SUBJECT TO THE LIEN OF THE PLEDGE WITHOUT ANY PHYSICAL DELIVERY OR FURTHER ACT, AND THE LIEN OF THE PLEDGE IS VALID AND BINDING AGAINST ALL PARTIES HAVING CLAIMS OF ANY KIND IN TORT, CONTRACT, OR OTHERWISE AGAINST THE PLEDGING PARTY. THE LIEN OF THE PLEDGE IS SUPERIOR TO ANY OTHER LIEN ON THE SAME REVENUE, ASSETS, OR PROPERTY THAT IS FILED LATER IN TIME OTHER THAN A LIEN FOR PROPERTY TAXES.

(I) NEITHER THE MEMBERS OF THE BOARD OF AN ENTERPRISE CREATED PURSUANT TO THIS SUBSECTION (2), EMPLOYEES OF THE ENTERPRISE, IF ANY, NOR ANY PERSON EXECUTING BONDS PURSUANT TO THIS SUBSECTION (2)(b) ARE LIABLE PERSONALLY ON THE BONDS OR SUBJECT TO ANY PERSONAL LIABILITY BY REASON OF THE ISSUANCE OF THE BONDS.

(J) AN ENTERPRISE CREATED PURSUANT TO THIS SUBSECTION (2) MAY PURCHASE BONDS THAT IT ISSUES PURSUANT TO THIS SUBSECTION (2)(b) OUT OF ANY AVAILABLE MONEY AND MAY HOLD, PLEDGE, CANCEL, OR RESELL THE BONDS SUBJECT TO AND IN ACCORDANCE WITH AGREEMENTS WITH THE HOLDERS OF THE BONDS.

(II) AN ENTERPRISE CREATED PURSUANT TO THIS SUBSECTION (2) MAY INVEST OR DEPOSIT ANY PROCEEDS AND ANY INTEREST FROM THE SALE OF BONDS PURSUANT TO THIS SUBSECTION (2)(b) IN THE MANNER PROVIDED BY PART 6 OF ARTICLE 75 OF TITLE 24. IN ADDITION, AN ENTERPRISE MAY DIRECT A CORPORATE TRUSTEE THAT HOLDS THE PROCEEDS AND ANY INTEREST TO INVEST OR DEPOSIT THE PROCEEDS AND ANY INTEREST IN INVESTMENTS OR DEPOSITS OTHER THAN THOSE SPECIFIED BY SAID PART RESOLUTION, THAT THE INVESTMENT OR DEPOSIT MEETS THE STANDARD ESTABLISHED IN SECTION 15-1-304, THE INCOME IS AT LEAST COMPARABLE TO INCOME AVAILABLE ON INVESTMENTS OR DEPOSITS SPECIFIED BY PART 6 OF ARTICLE 75 OF TITLE 24, AND THE INVESTMENT WILL ASSIST THE ENTERPRISE IN THE COMPLETION OF WORKFORCE HOUSING OR ACTIVITIES TO BE FINANCED FROM PROCEEDS OF THE BONDS.

(III) 6 IF THE ENTERPRISE DETERMINES, BY ALL BANKS, TRUST COMPANIES, SAVINGS AND LOAN ASSOCIATIONS, INSURANCE COMPANIES, EXECUTORS, ADMINISTRATORS, GUARDIANS, TRUSTEES, AND OTHER FIDUCIARIES MAY LEGALLY INVEST ANY MONEY WITHIN THEIR CONTROL IN BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b). PUBLIC ENTITIES, AS DEFINED IN

SECTION 24-75-601 (1), MAY INVEST PUBLIC MONEY IN SUCH BONDS ONLY IF THE BONDS SATISFY THE INVESTMENT REQUIREMENTS ESTABLISHED IN PART 6 OF ARTICLE 75 OF TITLE 24.

(IV) BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) ARE EXEMPT FROM THE PROVISIONS OF ARTICLE 51 OF TITLE 11.

(V) BONDS ISSUED BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) ARE EXEMPT FROM TAXATION BY THE STATE AND ANY COUNTY, CITY AND COUNTY, MUNICIPALITY, OR OTHER POLITICAL SUBDIVISION OF THE STATE.

(VI) THE ISSUANCE OF BONDS BY AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2)(b) NEED ONLY COMPLY WITH THE REQUIREMENTS OF THIS SUBSECTION (2)(b).

(3) (a) A SCHOOL DISTRICT MAY ISSUE NON-ENTERPRISE REVENUE BONDS TO ACCOMPLISH OR FURTHER ANY OF ITS POWERS OR DUTIES RELATING TO WORKFORCE HOUSING.

(b) AS USED IN THIS SUBSECTION (3), "NON-ENTERPRISE REVENUE BONDS" MEANS BONDS THAT ARE ISSUED BY A SCHOOL DISTRICT FOR THE PURPOSE OF FINANCING WORKFORCE HOUSING. NON-ENTERPRISE REVENUE BONDS:

(I) MUST BE PAYABLE FROM REVENUES DERIVED FROM THE OWNERSHIP AND OPERATION OF WORKFORCE HOUSING AND MAY BE SECURED BY A PLEDGE OF OR LIEN ON THOSE REVENUES AND A MORTGAGE OF SUCH WORKFORCE HOUSING FACILITIES;

(II) MUST BE AUTHORIZED BY THE VOTERS OF THE SCHOOL DISTRICT, IF REQUIRED BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION OR ANY OTHER PROVISION OF THE STATE CONSTITUTION;

(III) ARE NOT SUBJECT TO THE LIMITATIONS ON SCHOOL DISTRICT BONDS ESTABLISHED IN SECTION 22-42-104; AND

(IV) MUST BE ISSUED IN THE SAME MANNER, ARE ENTITLED TO THE SAME EXEMPTIONS FROM STATE TAXES AND OTHER STATE LAWS APPLICABLE TO THE ISSUANCE OF SCHOOL DISTRICT GENERAL OBLIGATION BONDS, AND, EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION (3), SHALL BE TREATED THE SAME, AS THE SCHOOL DISTRICT'S GENERAL OBLIGATION BONDS.

(4) A SCHOOL DISTRICT SHALL NOT ISSUE EXEMPT FACILITY BONDS, AS DEFINED IN SECTION 142 (a) OF THE INTERNAL REVENUE CODE; USE PRIVATE ACTIVITY BONDS VOLUME CAP ALLOCATION IN THE ISSUANCE OF BONDS; OR RECEIVE A DIRECT ALLOCATION, STATEWIDE BALANCE AWARD, OR ASSIGNMENT OF ALLOCATION OF STATE CEILING PURSUANT TO PART 17 OF ARTICLE 32 OF TITLE 24.

(5) AS USED IN THIS SECTION, UNLESS CONTEXT OTHERWISE REQUIRES:

(a) "ENTERPRISE" HAS THE SAME MEANING AS IN SECTION

(b) "WORKFORCE HOUSING" HAS THE SAME MEANING AS IN SECTION 22-43.8-103 (15).

SECTION 2. In Colorado Revised Statutes, 22-41-110, amend (1)(b)(II) and (1)(b)(III); and add (1)(b)(II.5) as follows:

22-41-110. Timely payment of school district obligations.

(1) (b) This section applies to:

(II) Obligations of a school district in connection with a lease agreement or installment purchase agreement entered into by a school district under section 22-32-127 or 22-45-103 (1)(c) on or after July 1, 1991, OR A LEASE OR LEASE-PURCHASE AGREEMENT BETWEEN THE SCHOOL DISTRICT AND THE STATE ENTERED INTO IN CONNECTION WITH A FINANCED PURCHASE OF AN ASSET AGREEMENT ENTERED INTO BY THE STATE PURSUANT TO SECTION 22-43.8-108; and (II.5) REVENUE BONDS ISSUED BY A SCHOOL DISTRICT ENTERPRISE PURSUANT TO SECTION 22-32-124.7 (2) OR NON-ENTERPRISE REVENUE BONDS ISSUED BY A SCHOOL DISTRICT PURSUANT TO SECTION 22-32-124.7

(3) FOR THE PURPOSE OF FINANCING WORKFORCE HOUSING; AND

(III) Refunding bonds issued by a school district pursuant to article 56 of title 11 OR BY A SCHOOL DISTRICT ENTERPRISE PURSUANT TO

SECTION 22-32-124.7 (2).

SECTION 3. In Colorado Revised Statutes, 22-43.7-105, add (4) as follows: 22-43.7-105. Division of public school capital construction assistance - creation - director - function - powers and duties.

(4) IN ADDITION TO THE FUNCTIONS OF THE DIVISION SPECIFIED IN SUBSECTIONS (2) AND (3) OF THIS SECTION, THE DIVISION SHALL PROVIDE PROFESSIONAL AND TECHNICAL SUPPORT AS DESCRIBED IN ARTICLE 43.8 OF THIS TITLE 22 OR AS OTHERWISE REQUIRED TO THE WORKFORCE HOUSING ASSISTANCE BOARD CREATED IN SECTION 22-43.8-105, IN PARTNERSHIP WITH THE DIVISION OF HOUSING WITHIN THE DEPARTMENT OF LOCAL AFFAIRS.

SECTION 4. In Colorado Revised Statutes, add article 43.8 to title 22 as follows:

ARTICLE 43.8 Building Excellent Teacher and Employee Residences 22-43.8-101. Short title.

THE SHORT TITLE OF THIS ARTICLE 43.8 IS THE "BUILDING EXCELLENT TEACHER AND EMPLOYEE RESIDENCES ACT".

22-43.8-102. Legislative findings and declarations.

(1) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a) COLORADO IS EXPERIENCING A SEVERE AND PERVASIVE HOUSING AFFORDABILITY CRISIS, WITH RENTS AND HOME PRICES IN MANY COMMUNITIES RISING FAR FASTER THAN EDUCATOR SALARIES.

NUMEROUS COMMUNITIES, THE SHORTAGE OF AFFORDABLE HOUSING HAS MADE IT DIFFICULT OR IMPOSSIBLE FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF TO LIVE IN THE COMMUNITIES THEY SERVE. THIS HOUSING SHORTAGE DIRECTLY CONTRIBUTES TO CHRONIC STAFFING VACANCIES, HIGH TURNOVER, AND DISRUPTIONS TO STUDENT IN LEARNING.

(b) SCHOOL DISTRICTS POSSESS VARYING LEVELS OF FINANCIAL CAPACITY TO DEVELOP WORKFORCE HOUSING FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF, AND MANY ARE UNABLE TO FINANCE SUCH PROJECTS BECAUSE RENTAL INCOME CANNOT SUPPORT THE FULL COSTS OF DEVELOPMENT IN THE CURRENT INTEREST RATE AND CONSTRUCTION COST ENVIRONMENT;

(c) THE ESTABLISHMENT OF A PROGRAM TO PROVIDE STATE FINANCIAL ASSISTANCE FOR WORKFORCE HOUSING IS NECESSARY TO ENSURE THAT TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF HAVE ACCESS TO SAFE AND ATTAINABLE HOUSING THAT ALLOWS THEM TO LIVE IN THE COMMUNITIES THEY SERVE, THEREBY SUPPORTING COLORADO'S CHILDREN AND FAMILIES AND THE EFFECTIVE OPERATION OF PUBLIC SCHOOLS; AND (d) THE EDUCATIONAL SUCCESS AND WELL-BEING OF THE PROVISION OF FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF WORKFORCE HOUSING FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF PURSUANT TO THIS ARTICLE 43.8 SUPPLEMENTS, AND DOES NOT SUPPLANT, OTHER STATE FUNDING FOR EDUCATION, AND DOES NOT REDUCE ANY STATE OBLIGATIONS UNDER EXISTING REQUIREMENTS.

STATUTORY OR COURT-ORDERED EDUCATION FUNDING

(2) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:

(a) THE PROVISION OF FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF WORKFORCE HOUSING FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF PURSUANT TO THIS ARTICLE 43.8 SUPPLEMENTS, AND DOES NOT SUPPLANT, OTHER STATE FUNDING FOR EDUCATION, AND DOES NOT REDUCE ANY STATE OBLIGATIONS UNDER EXISTING REQUIREMENTS; AND STATUTORY OR COURT-ORDERED EDUCATION FUNDING

(b) HOUSING PROJECTS THAT SELECT TENANTS USING A TENANT SELECTION PROCESS THAT CREATES PREFERENCES FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF AND OTHER PERSONS IN ACCORDANCE WITH SECTION 22-47.8-107 (3)(a):

(I) P ROMOTE A SUBSTANTIAL, LEGITIMATE , AND NONDISCRIMINATORY STATE INTEREST THAT CANNOT BE SERVED BY ANOTHER PRACTICE WITH A LESS DISCRIMINATORY EFFECT;

(II) COMPLY WITH THE FEDERAL "FAIR HOUSING ACT", 42 U.S.C.

SEC. 3601 ET SEQ., PART 5 OF ARTICLE 34 OF TITLE 24, AND OTHER STATE AND LOCAL LAWS, ORDINANCES, AND RESOLUTIONS.

(3) THE GENERAL ASSEMBLY FURTHER FINDS AND DECLARES THAT:

(a) IN ACCORDANCE WITH THE DECISION OF THE COLORADO COURT OF APPEALS IN THE CASE DENOMINATED COLORADO CRIMINAL JUSTICE REFORM COALITION V. ORTIZ, CASE NO. 04 CA 0879 (APRIL 7, 2005), THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS ENTERED INTO PURSUANT TO THIS ARTICLE 43.8 DO NOT CONSTITUTE A MULTIPLE-FISCAL YEAR DIRECT OR INDIRECT DISTRICT DEBT OR OTHER FINANCIAL OBLIGATION WHATSOEVER FOR PURPOSES OF

SECTION 20 (4)(a) OF ARTICLE X OF THE STATE CONSTITUTION;

(b) A PUBLIC-PRIVATE PARTNERSHIP ENTERED INTO BY A SCHOOL DISTRICT, THE STATE, OR OTHER GOVERNMENTAL ENTITY IN CONNECTION WITH WORKFORCE HOUSING FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF SERVES A PUBLIC PURPOSE AND DOES NOT, THEREFORE, VIOLATE SECTION 2 OF ARTICLE XI OF THE STATE CONSTITUTION; AND

(c) THE PROVISION OF FINANCIAL ASSISTANCE FOR WORKFORCE HOUSING FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL REQUIREMENTS OF SECTION 3 OF ARTICLE IX OF THE STATE CONSTITUTION.

STAFF PURSUANT TO THIS ARTICLE MEETS THE 22-43.8-103. Definitions.

AS USED IN THIS ARTICLE 43.8, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(1) "APPLICANT" MEANS A SCHOOL DISTRICT THAT DIRECTLY OR INDIRECTLY SUBMITS AN APPLICATION FOR FINANCIAL ASSISTANCE TO THE BOARD.

(2) "BOARD" MEANS THE WORKFORCE HOUSING ASSISTANCE BOARD CREATED IN SECTION 22-43.8-105.

(3) "DEPARTMENT" MEANS THE DEPARTMENT OF EDUCATION CREATED IN SECTION 24-1-115.

(4) "DIVISION OF HOUSING" MEANS THE DIVISION OF HOUSING WITHIN THE DEPARTMENT OF LOCAL AFFAIRS CREATED IN SECTION "DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE" MEANS THE DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE WITHIN THE DEPARTMENT CREATED IN

SECTION 22-43.7-105.

(6) "FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT" MEANS A LEASE-PURCHASE AGREEMENT BETWEEN THE STATE TREASURER AND A TRUSTEE ENTERED INTO PURSUANT TO SECTION 22-43.8-108 PURSUANT TO WHICH:

(a) THE STATE MAKES RENTAL PAYMENTS THAT INCLUDE PRINCIPAL AND INTEREST COMPONENTS; AND (b) THE TRUSTEE, PURSUANT TO AN INDENTURE OF TRUST, CREATES CERTIFICATES OF PARTICIPATION EVIDENCING UNDIVIDED INTERESTS IN THE PAYMENTS MADE BY THE STATE UNDER THE LEASE-PURCHASE AGREEMENT.

(7) "FINANCIAL ASSISTANCE" MEANS MATCHING GRANTS MADE BY THE BOARD FROM THE ASSISTANCE FUND TO APPLICANTS OR ANY OTHER EXPENDITURES MADE FROM THE ASSISTANCE FUND FOR THE PURPOSE OF FINANCING WORKFORCE HOUSING AS AUTHORIZED BY THIS ARTICLE 43.8.

(8) "FUND" MEANS THE WORKFORCE HOUSING ASSISTANCE FUND CREATED IN SECTION 22-43.8-104.

(9) "MATCHING MONEY" MEANS ANY INSTRUMENT OR MONEY AN APPLICANT IS REQUIRED TO PAY TO THE STATE OR USE DIRECTLY TO PAY A PORTION OF THE COSTS OF AN APPLICANT'S WORKFORCE HOUSING PROJECT AS A CONDITION OF AN AWARD OF FINANCIAL ASSISTANCE TO THE APPLICANT PURSUANT TO SECTION 24-43.8-107 (12). MATCHING MONEY MAY INCLUDE REVENUE OR PROCEEDS GENERATED FROM A LEASE, A LEASE-PURCHASE AGREEMENT, A PRIVATE FINANCING, A GENERAL OBLIGATION BOND, A REVENUE BOND ISSUED BY A SCHOOL DISTRICT ENTERPRISE NON-ENTERPRISE BOND ISSUED BY A SCHOOL DISTRICT PURSUANT TO

SECTION 22-32-124.7 (3) FOR THE PURPOSE OF FINANCING WORKFORCE HOUSING, OR ANY OTHER MONEY OBTAINED BY AN APPLICANT.

PURSUANT TO SECTION OR A

(10) "SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT, OTHER THAN A JUNIOR OR COMMUNITY COLLEGE DISTRICT, ORGANIZED AND EXISTING PURSUANT TO LAW AND INCLUDES ANY WORKFORCE HOUSING ENTERPRISE CREATED BY A SCHOOL DISTRICT.

(11) "SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT" MEANS A LEASE-PURCHASE AGREEMENT BETWEEN THE STATE TREASURER AND A SCHOOL DISTRICT PURSUANT TO WHICH A SCHOOL DISTRICT SUB-LEASE PURCHASES FROM THE STATE A WORKFORCE HOUSING PROJECT THAT IS THE SUBJECT OF A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT.

(12) "STATE BOARD" MEANS THE STATE BOARD OF EDUCATION CREATED AND EXISTING PURSUANT TO SECTION 1 OF ARTICLE IX OF THE STATE CONSTITUTION.

(13) "STATE HOUSING BOARD" MEANS THE STATE HOUSING BOARD CREATED IN SECTION 24-32-706 (1).

"TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF" MEANS TEACHERS AND OTHER STAFF EMPLOYED BY A SCHOOL DISTRICT OR BY A CHARTER SCHOOL THAT SERVES STUDENTS WITHIN A SCHOOL DISTRICT'S BOUNDARIES.

(15) "WORKFORCE HOUSING" MEANS HOUSING OR RESIDENTIAL FACILITIES INTENDED TO PRIMARILY HOUSE TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF.

(16) "WORKFORCE HOUSING GUIDELINES" MEANS THE WORKFORCE HOUSING GUIDELINES ESTABLISHED BY THE BOARD PURSUANT TO SECTION

(17) "WORKFORCE HOUSING PROJECT" OR "PROJECT" MEANS AN UNDERTAKING TO PROVIDE WORKFORCE HOUSING THROUGH THE "BUILDING EXCELLENT TEACHER AND EMPLOYEE RESIDENCES ACT".

22-43.8-104. Workforce housing assistance fund - creation crediting of money to fund - use of fund. (1) THE WORKFORCE HOUSING ASSISTANCE FUND IS CREATED IN THE STATE TREASURY. THE FUND CONSISTS OF MONEY CREDITED OR TRANSFERRED TO THE FUND PURSUANT TO THIS SECTION, MONEY TRANSFERRED BY THE STATE TREASURER FROM THE STATE EDUCATION FUND PURSUANT TO SECTION 22-55-103 (7), AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND.

THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME EARNED ON THE DEPOSIT AND INVESTMENT OF MONEY IN THE WORKFORCE HOUSING ASSISTANCE FUND TO THE FUND.

(2) ON JULY 1, 2026, AND EACH JULY 1 THEREAFTER, THE TREASURER SHALL CREDIT THE FOLLOWING MONEY TO THE FUND:

(a) THE NET PROCEEDS MADE AVAILABLE TO THE STATE FROM THE SALE OF INSTRUMENTS EVIDENCING RIGHTS TO RECEIVE PAYMENTS MADE AND TO BE MADE UNDER THE TERMS OF A FINANCED PURCHASE OF AN ASSET OTHERWISE REQUIRED BY THE DOCUMENTS PURSUANT TO WHICH THE INSTRUMENTS ARE ISSUED; AND OR CERTIFICATE OF PARTICIPATION AGREEMENT, UNLESS

(b) MATCHING MONEY THAT AN APPLICANT PAYS TO THE STATE FOR USE BY THE STATE IN MAKING SCHEDULED PAYMENTS UNDER THE TERMS OF A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT.

(3) IF THE AMOUNT OF MONEY IN THE FUND THAT IS AVAILABLE TO MAKE PAYMENTS UNDER A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT WILL BE INSUFFICIENT TO COVER THE FULL AMOUNT OF THE PAYMENTS REQUIRED BY THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT, THE GENERAL ASSEMBLY MAY APPROPRIATE OR DIRECT THE STATE TREASURER TO TRANSFER FROM ANY LEGALLY AVAILABLE SOURCE TO THE FUND SUFFICIENT MONEY TO MAKE THE PAYMENTS.

(4) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE DEPARTMENT AND THE DEPARTMENT OF LOCAL AFFAIRS, AS APPLICABLE, FOR THE PURPOSES OF PAYING THE DIRECT AND INDIRECT ADMINISTRATIVE COSTS INCURRED BY THE DIVISION OF HOUSING AND DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE, THE BOARD, AND THE DEPARTMENTS IN EXERCISING THEIR POWERS AND DUTIES PURSUANT TO THIS ARTICLE 43.8; PROVIDING FINANCIAL ASSISTANCE DIRECTLY TO SCHOOL DISTRICTS IN THE FORM OF GRANTS THAT MAY EITHER BE FUNDED FROM CASH OR FROM THE PROCEEDS OF THE MULTIPLE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS ENTERED INTO PURSUANT TO THIS ARTICLE 43.8 AND PAYING ANY TRANSACTION COSTS NECESSARILY INCURRED IN CONNECTION WITH THE PROVISION OF FINANCIAL ASSISTANCE; ENTERING INTO A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE PURCHASE AGREEMENT, A SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE PURCHASE AGREEMENT, AND AGREEMENTS REGARDING MATCHING MONEY; ISSUING CERTIFICATES OF PARTICIPATION,AND OTHER ACTIVITIES, AS AUTHORIZED BY THIS ARTICLE 43.8.

(5) IN DETERMINING THE AMOUNT OF FINANCIAL ASSISTANCE THAT IT PROVIDES, AND AS A CONDITION OF ENTERING INTO A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT PURSUANT TO THIS ARTICLE 43.8, THE BOARD SHALL ENSURE THAT THE BALANCE OF THE FUND IS AT LEAST EQUAL TO TWICE THE AMOUNT OF PAYMENTS MADE BY THE STATE DURING THE NEXT STATE FISCAL YEAR UNDER THE TERMS OF SUCH AN AGREEMENT, LESS THE AMOUNT OF ANY SCHOOL DISTRICT MATCHING MONEY AND ANY FEDERAL MONEY TO BE RECEIVED FOR THE PURPOSE OF MAKING THE PAYMENTS.

IDENTIFYING THE BALANCE OF THE FUND PURSUANT TO THIS SUBSECTION (5), THE BOARD SHALL DESIGNATE AN AMOUNT IN THE FUND EQUAL TO THAT BALANCE THAT SHALL SERVE AS A RESTRICTED RESERVE THAT MAY ONLY BE USED TO MAKE PAYMENTS REQUIRED OF THE STATE BY THE TERMS OF THE RELEVANT FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT.

UPON 22-43.8-105. Workforce housing assistance board - creation general powers and duties - rules.

(1) (a) THERE IS CREATED IN THE DEPARTMENT THE WORKFORCE HOUSING ASSISTANCE BOARD. THE BOARD IS A TYPE 1 ENTITY, AS DEFINED IN SECTION 24-1-105, AND EXERCISES ITS POWERS AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER THE DEPARTMENT. THE BOARD CONSISTS OF NINE APPOINTED MEMBERS, NONE OF WHOM SHALL HOLD ANY STATE ELECTIVE OFFICE. FIVE VOTING MEMBERS OF THE BOARD CONSTITUTE A QUORUM. BOARD MEMBERS ARE APPOINTED AS FOLLOWS:

(I) THE STATE BOARD SHALL APPOINT THREE MEMBERS FROM DIFFERENT AREAS OF THE STATE AND FROM URBAN, SUBURBAN, AND RURAL SCHOOL DISTRICTS. THE MEMBERS APPOINTED BY THE STATE BOARD SHALL INCLUDE:

(A) ONE MEMBER WHO IS A SCHOOL DISTRICT BOARD MEMBER AT THE TIME OF APPOINTMENT;

(B) ONE MEMBER WHO IS A PUBLIC SCHOOL SUPERINTENDENT OR ADMINISTRATOR IN CHARGE APPOINTMENT; AND OF OPERATIONS AT THE TIME OF

(C) ONE MEMBER WHO IS A PUBLIC SCHOOL TEACHER OR TENANT OF SCHOOL DISTRICT-OWNED RENTAL HOUSING AT THE TIME OF APPOINTMENT.

(II) THE GOVERNOR SHALL APPOINT THREE MEMBERS. THE MEMBERS APPOINTED BY THE GOVERNOR MUST HAVE SUBSTANTIAL EXPERIENCE IN AFFORDABLE OR WORKFORCE HOUSING, INCLUDING EXPERIENCE DEVELOPMENT, CONSTRUCTION, ASSET MANAGEMENT, OR MULTIFAMILY FINANCE.

IN ONE OR MORE OF THE FOLLOWING:

HOUSING

(III) THE GENERAL ASSEMBLY SHALL APPOINT TWO MEMBERS, ONE OF WHOM SHALL BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND ONE OF WHOM SHALL BE APPOINTED BY THE PRESIDENT OF THE SENATE. THE MEMBERS APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES AND THE PRESIDENT OF THE SENATE MUST HAVE SUBSTANTIAL EXPERIENCE IN AFFORDABLE OR WORKFORCE HOUSING, INCLUDING EXPERIENCE IN ONE OR MORE OF THE FOLLOWING:

HOUSING DEVELOPMENT, CONSTRUCTION, ASSET MANAGEMENT, OR MULTIFAMILY FINANCE.

(IV) THE STATE TREASURER SHALL APPOINT ONE MEMBER WITH EXPERIENCE IN PUBLIC FINANCE INCLUDING THE ISSUANCE OF STATE CERTIFICATES OF PARTICIPATION, SCHOOL DISTRICT BONDS, AND HOUSING PUBLIC FINANCE.

(b) (I) MEMBERS OF THE BOARD SHALL SERVE FOR TERMS OF TWO YEARS AND MAY SERVE UP TO THREE CONSECUTIVE TERMS; EXCEPT THAT THE TERM OF EACH MEMBER INITIALLY APPOINTED UNDER SUBSECTIONS (1)(a)(I) AND (1)(a)(III) OF THIS SECTION IS ONE YEAR.

(II) THE APPOINTING AUTHORITY FOR A MEMBER MAY REMOVE THE MEMBER FOR ANY CAUSE THAT RENDERS THE MEMBER INCAPABLE OF DISCHARGING OR UNFIT TO DISCHARGE THE MEMBER'S DUTIES.

(III) THE APPROPRIATE APPOINTING AUTHORITY SHALL FILL ANY VACANCY IN THE MEMBERSHIP OF THE BOARD BY APPOINTMENT, AND A MEMBER APPOINTED TO FILL A VACANCY SHALL SERVE UNTIL THE EXPIRATION OF THE TERM FOR WHICH THE VACANCY WAS FILLED.

(IV) MEMBERS OF THE BOARD SERVE WITHOUT COMPENSATION BUT ARE ENTITLED TO REIMBURSEMENT FOR TRAVEL AND OTHER NECESSARY EXPENSES ACTUALLY INCURRED IN THE PERFORMANCE OF THEIR DUTIES.

(V) THE BOARD SHALL ELECT A CHAIR FROM AMONG ITS MEMBERS.

(2) THE FUNCTION OF THE BOARD IS TO ASSIST IN THE PROVISION OF WORKFORCE HOUSING ASSISTANCE FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF BY ENSURING THAT APPLICANTS CAN LEVERAGE FUNDS TO PROVIDE AFFORDABLE WORKFORCE HOUSING ASSISTANCE. IN PERFORMING ITS FUNCTION, THE BOARD SHALL ENSURE THE MOST EQUITABLE, EFFICIENT, AND EFFECTIVE USE OF STATE REVENUES DEDICATED TO PROVIDE FINANCIAL ASSISTANCE FOR WORKFORCE HOUSING PURSUANT TO THE PROVISIONS OF THIS ARTICLE 43.8 AND BASED ON OBJECTIVE CRITERIA REGARDING THE APPROPRIATE PRIORITIZATION AND ALLOCATION OF FINANCIAL ASSISTANCE FOR WORKFORCE HOUSING. TO FURTHER THE PERFORMANCE OF ITS FUNCTION, THE BOARD, IN ADDITION TO ANY OTHER POWERS AND DUTIES SPECIFIED IN THIS ARTICLE 43.8, HAS THE FOLLOWING POWERS AND DUTIES:

(a) TO ESTABLISH WORKFORCE HOUSING GUIDELINES;

(b) TO REVIEW FINANCIAL ASSISTANCE APPLICATIONS AND DETERMINE A PRIORITIZED LIST OF PROJECTS TO RECEIVE FINANCIAL ASSISTANCE AND THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE THAT SHOULD BE PROVIDED FOR EACH PROJECT;

(c) TO ESTABLISH GUIDELINES FOR THE DIVISION OF HOUSING AND DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE TO FOLLOW WHEN ASSISTING POTENTIAL APPLICANTS IN IDENTIFYING WORKFORCE HOUSING NEEDS AND PREPARING FINANCIAL ASSISTANCE APPLICATIONS;

(d) WITH THE SUPPORT OF THE DIVISION OF HOUSING AND DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE, TO ASSIST APPLICANTS CONSTRUCTION MANAGEMENT STAFF IN IMPLEMENTING THE PROJECTS FOR WHICH FINANCIAL ASSISTANCE IS PROVIDED, INCLUDING PROVIDING ASSISTANCE WITH THE PREPARATION OF REQUESTS FOR BIDS OR PROPOSALS, CONTRACT NEGOTIATIONS, CONTRACT IMPLEMENTATION, AND PROJECT AND CONSTRUCTION MANAGEMENT;

THAT CANNOT FEASIBLY MAINTAIN THEIR OWN

(e) WITH THE SUPPORT OF THE DIVISION OF HOUSING AND DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE, TO ASSIST APPLICANTS RESIDENTIAL FACILITY DESIGN AND CONSTRUCTION PRACTICES;

(f) IN IMPLEMENTING ENERGY-EFFICIENT HOUSING OR TO AUTHORIZE THE STATE TREASURER TO ENTER INTO FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS PURSUANT TO SECTION 22-43.8-108 IN ORDER TO FINANCE WORKFORCE HOUSING CONSTRUCTION;

(g) TO ENTER INTO SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS BETWEEN THE STATE AND APPLICANTS;

(h) ENTER INTO CONTRACTS WITH PUBLIC ENTITIES AND PRIVATE PARTIES, INCLUDING PUBLIC-PUBLIC AND PUBLIC-PRIVATE PARTNERSHIPS, FOR THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, OWNERSHIP, OPERATION, LEASING, AND LEASE-PURCHASING OF WORKFORCE HOUSING;

AND

(i) (I) TO ESTABLISH RULES, IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, AS ARE NECESSARY AND PROPER FOR THE ADMINISTRATION OF THIS ARTICLE 43.8, INCLUDING:

(A) CONFLICT OF INTEREST RULES FOR BOARD MEMBERS;

(B) RULES ESTABLISHING EVALUATION CRITERIA FOR MATCHING MONEY REQUIREMENT REDUCTION APPLICATIONS SUBMITTED TO THE BOARD PURSUANT TO SECTION 22-43.8-107; AND

(C) RULES ESTABLISHING THE MEANS BY WHICH WORKFORCE HOUSING FINANCED IN WHOLE OR IN PART WITH FINANCIAL ASSISTANCE PROVIDED PURSUANT THIS ARTICLE 43.8 IS TO BE PUBLICLY IDENTIFIED AS HAVING BEEN SO FINANCED.

(II) THE BOARD SHALL PROVIDE A COPY OF ANY PROPOSED BOARD RULE TO THE STATE BOARD ON OR BEFORE THE DATE ON WHICH THE BOARD ISSUES A NOTICE OF PROPOSED RULE-MAKING FOR THE RULE PURSUANT TO SECTION 24-4-103 (3).

22-43.8-106. Workforce housing guidelines - establishment by board - use - definition.

(1) (a) THE BOARD SHALL ESTABLISH WORKFORCE HOUSING GUIDELINES FOR USE BY THE BOARD IN REVIEWING APPLICATIONS FOR FINANCIAL ASSISTANCE, AND MAKING RECOMMENDATIONS TO THE STATE BOARD REGARDING APPROPRIATE ALLOCATION OF AWARDS OF FINANCIAL ASSISTANCE FROM THE FUND ONLY TO APPLICANTS. IN ESTABLISHING THE GUIDELINES, THE BOARD SHALL CONSULT WITH THE DIVISION OF HOUSING REGARDING STANDARDS, FINANCIAL FEASIBILITY CRITERIA, AND COMPLIANCE HOUSING DEVELOPMENT, INCLUDING UNDERWRITING REQUIREMENTS, AND SHALL CONSIDER STANDARDS AND PRACTICES USED BY THE DIVISION OF HOUSING IN ADMINISTERING STATE HOUSING PROGRAMS. THE BOARD SHALL ESTABLISH THE GUIDELINES IN RULES PROMULGATED IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24.

(b) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE WORKFORCE HOUSING GUIDELINES BE USED ONLY FOR THE PURPOSES SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION.

(2) (a) THE WORKFORCE HOUSING GUIDELINES MUST IDENTIFY AND DESCRIBE HOUSING NEEDS FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF AND THE MEANS OF ADDRESSING THOSE NEEDS AT A REASONABLE COST AND IN A MANNER THAT WILL RESULT IN AFFORDABLE HOUSING. THE BOARD SHALL ENSURE THAT THE WORKFORCE HOUSING GUIDELINES INCLUDE FOLLOWING:

GUIDELINES THAT ADDRESS THE

(I) BUILDING PERFORMANCE STANDARDS AND GUIDELINES, FOR THE PURPOSES OF UTILITY COST REDUCTION, INCLUDING GREEN BUILDING AND ENERGY EFFICIENCY CRITERIA AS SPECIFIED IN EXECUTIVE ORDER D0012 07, "GREENING IMPLEMENTATION", ISSUED BY THE GOVERNOR ON APRIL 16, 2007, OR ANY SUBSEQUENT EXECUTIVE ORDERS OR OTHER POLICY DIRECTIVES CONCERNING GREEN BUILDING AND ENERGY EFFICIENCY CRITERIA ISSUED BY THE GOVERNOR OR THE COLORADO ENERGY OFFICE;

OF STATE G OVERNMENT : DETAILED

(II) REQUIRING A REVIEW WITH THE INCUMBENT ELECTRIC UTILITY REGARDING ENERGY EFFICIENCY; BENEFICIAL ELECTRIFICATION, AS DEFINED IN SECTION 40-1-102 (1.2); AND RENEWABLE DISTRIBUTED GENERATION OPPORTUNITIES;

(III) THE CURRENT CAPACITY OF EXISTING AND PLANNED WORKFORCE HOUSING AND DIFFERENT METHODS OF EVALUATING THAT CAPACITY, TAKING INTO CONSIDERATION POTENTIAL EXPANSION OF STUDENT POPULATIONS AND SERVICES FOR THE BENEFIT OF STUDENTS SUCH AS FULL-DAY KINDERGARTEN AND PRESCHOOL- AND SCHOOL-BASED HEALTH SERVICES;

(IV) WORKFORCE HOUSING ACCESSIBILITY;

(V) THE ABILITY OF AN APPLICANT TO PARTNER WITH LOCAL OR STATE GOVERNMENT, LOCAL OR STATE HOUSING AUTHORITIES, OR OTHER EMPLOYERS, SPECIFICALLY FOR THE PURPOSE OF LEVERAGING LAND AND IMPROVING PROJECT ECONOMICS;

(VI) LONG-TERM FINANCIAL SUSTAINABILITY STANDARDS THAT REQUIRE AN APPLICANT TO DEMONSTRATE:

(A) POSITIVE CASH FLOW AFTER PAYING MATCHING MONEY TO THE FUND;

(B) AN OPERATIONS EXPENSE ESCALATION RATE THAT IS NO LESS THAN THE INCOME ESCALATION RATE; AND

(C) CAPITAL REPLACEMENT RESERVES FUNDED ANNUALLY AT A LEVEL SUFFICIENT TO COVER THE PROJECTED COST OF MAJOR SYSTEM REPLACEMENTS OVER THE THIRTY-YEAR OPERATING PLAN REQUIRED PURSUANT TO SECTION 22-43.8-107 (7)(g) IN CONSULTATION WITH THE STATE TREASURER;

(VII) REQUIRING APPLICANTS TO IMPLEMENT SAFEGUARDS TO PROTECT TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF RESIDING IN WORKFORCE HOUSING FROM UNDUE INFLUENCE OR COERCION ARISING FROM THE DISTRICT'S ROLE AS BOTH EMPLOYER AND HOUSING PROVIDER. AT A MINIMUM, SUCH GUIDELINES MUST INCLUDE A REQUIREMENT THAT THE APPLICANT RETAIN A QUALIFIED THIRD-PARTY PROPERTY MANAGER TO EXERCISE INDEPENDENT AUTHORITY OVER DAY-TO-DAY COLLECTION, MAINTENANCE, AND ENFORCEMENT OF LEASE TERMS, WITH A PREFERENCE FOR NONPROFIT HOUSING ORGANIZATIONS OR PUBLIC HOUSING AUTHORITIES WHERE AVAILABLE AND A REQUIREMENT THAT GOVERNANCE AND ADMINISTRATION OF WORKFORCE HOUSING BE STRUCTURALLY AND OPERATIONALLY SEPARATE FROM THE APPLICANT'S HUMAN RESOURCES FUNCTIONS.

LANDLORD FUNCTIONS, INCLUDING LEASING, RENT DEFINING "NONPROFIT HOUSING ORGANIZATION" AND (VIII) "PUBLIC HOUSING AUTHORITY" FOR PURPOSES OF THE GUIDELINES DESCRIBED IN SUBSECTION (2)(a)(VII) OF THIS SECTION, IN A MANNER THAT REQUIRES SUCH AN ORGANIZATION OR AUTHORITY TO:

(A) HAVE A PRIMARY MISSION OF PROVIDING AFFORDABLE OR WORKFORCE HOUSING;

(B) HOUSING; AND HAVE EXPERIENCE IN MANAGING MULTIFAMILY RENTAL

(C) OPERATE INDEPENDENTLY FROM THE SCHOOL DISTRICT.

(IX) REQUIRING THAT TENANT ELIGIBILITY AND PRIORITIZATION POLICIES FOR WORKFORCE HOUSING DEVELOPED WITH FINANCIAL ASSISTANCE DISADVANTAGE OTHERWISE ELIGIBLE APPLICANTS SOLELY ON THE BASIS THAT THE APPLICANT IS EMPLOYED BY A CHARTER SCHOOL AUTHORIZED BY OR OPERATING WITHIN THE GEOGRAPHIC BOUNDARIES OF THE APPLICANT'S SCHOOL DISTRICT; AND UNDER THIS ARTICLE DO NOT EXCLUDE OR

(X) A STRUCTURE OF BONUS FUNDS TO INCENTIVIZE DEVELOPMENT IN RURAL DISTRICTS AND TO INCENTIVIZE MULTIJURISDICITIONAL PROJECTS, ESPECIALLY IN RURAL DISTRICTS.

(b) THE BOARD MAY WAIVE ONE OR MORE OF THE GUIDELINES REQUIRED BY SUBSECTIONS (2)(a)(I), (2)(a)(II), AND (2)(a)(VII) OF THIS SECTION.

22-43.8-107. Financial assistance for workforce housing - application requirements - evaluation criteria - local match requirements - affordability requirements - use requirements - rules.

(1) THE BOARD, WITH THE SUPPORT OF THE DIVISION OF HOUSING AND THE DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE SHALL PROVIDE FINANCIAL ASSISTANCE TO AN APPLICANT FOR A WORKFORCE HOUSING PROJECT AS SPECIFIED IN THIS SECTION ONLY SO LONG AS:

(a) THE APPLICANT OWNS OR WILL HAVE THE RIGHT TO OWN THE WORKFORCE HOUSING PROJECT OR A LEASEHOLD INTEREST IN THE WORKFORCE HOUSING PROJECT;

(b) THE WORKFORCE HOUSING PROJECT WILL SATISFY THE AFFORDABILITY REQUIREMENTS ESTABLISHED BY THE BOARD IN SUBSECTION (2) OF THIS SECTION;

(c) THE APPLICANT HAS SAFEGUARDS TO PROHIBIT CONSIDERING WORKFORCE HOUSING OCCUPANCY, TENANCY, STATUS, OR LEASE COMPLIANCE AS A FACTOR IN HIRING, TERMINATION, PROMOTION, PERFORMANCE EVALUATION, DISCIPLINARY ACTION, OR ANY OTHER EMPLOYMENT-RELATED DECISION;

(d) THE WORKFORCE HOUSING PROJECT WILL SATISFY THE TENANCY REQUIREMENTS ESTABLISHED BY THE BOARD PURSUANT TO SUBSECTION (3) OF THIS SECTION; AND (e) THE WORKFORCE HOUSING PROJECT WILL SATISFY THE ENVIRONMENTAL AND BUILDING REQUIREMENTS ESTABLISHED BY THE BOARD PURSUANT TO SUBSECTION (4) OF THIS SECTION.

(2) (a) THE BOARD SHALL ESTABLISH AFFORDABILITY REQUIREMENTS FOR ANY WORKFORCE HOUSING PROJECT TO ENSURE THAT THE APPLICANTS COMPLY WITH AFFORDABILITY PROTECTIONS IN RELATION TO THE PROJECT INCLUDING:

(I) AFFORDABILITY STANDARDS CONSISTENT WITH THE UNITED STATES GUIDELINES, SPECIFICALLY ENSURING THAT TOTAL MONTHLY HOUSING COSTS, INCLUDING RENT AND A REASONABLE UTILITY ALLOWANCE, DO NOT EXCEED THIRTY PERCENT OF THE GROSS MONTHLY HOUSEHOLD INCOME FOR THE TARGETED WORKFORCE UTILIZING THE HOUSING OR RESIDENTIAL FACILITIES IN THE PROJECT; AND DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

(II) REQUIRING THAT THE PROJECT IS SUBJECT TO A RECORDED RESTRICTED COVENANT WITH AFFORDABILITY REQUIREMENTS FOR THE DURATION OF ANY FINANCIAL ASSISTANCE PROVIDED PURSUANT TO THIS ARTICLE 43.8 FOR THE WORKFORCE HOUSING PROJECT.

(b) REQUIREMENTS ESTABLISHED BY THE BOARD PURSUANT TO THIS SUBSECTION (2) SHALL NOT PRECLUDE APPLICANTS FROM INCLUDING COMPONENTS OF TENANT EQUITY OR OTHER INSTRUMENTS THAT ALLOCATE A PORTION OF RENTAL PAYMENTS TO FUTURE HOUSING NEEDS OF THE TENANT.

(c) UPON THE EXPIRATION OF A RECORDED RESTRICTED COVENANT WITH AFFORDABILITY REQUIREMENTS FOR A WORKFORCE HOUSING PROJECT, THE WORKFORCE HOUSING PROJECT SHALL EITHER:

(I) BE MAINTAINED FOR ITS ORIGINAL PURPOSE WITH EQUAL OR GREATER LEVELS OF AFFORDABILITY FOR THIRTY YEARS OR MORE; OR

(II) BE SUBJECT TO THE LOCAL GOVERNMENT'S RIGHT OF FIRST REFUSAL TO PURCHASE MULTIFAMILY HOUSING ESTABLISHED PURSUANT TO PART 12 OF ARTICLE 4 OF TITLE 29.

(3) (a) THE BOARD SHALL ESTABLISH TENANCY REQUIREMENTS FOR ANY WORKFORCE HOUSING PROJECT TO ENSURE THAT:

(I) NO LESS THAN EIGHTY PERCENT OF THE HOUSING OR RESIDENTIAL FACILITIES IN THE PROJECT MUST BE RENTED USING A TENANT SELECTION PROCESS THAT PRIORITIZES TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF THAT ARE EMPLOYED BY THE APPLICANT OR PUBLIC SCHOOLS WITHIN THE APPLICANT'S BOUNDARIES;

AND

(II) AFTER ACCOUNTING FOR THE REQUIREMENTS OF SUBSECTION (3)(a)(I) OF THIS SECTION, THE REMAINING HOUSING OR RESIDENTIAL FACILITIES MUST BE RENTED USING A TENANT SELECTION PROCESS THAT PRIORITIZES EMPLOYEES OF LOCAL GOVERNMENTS OR NONPROFIT CHILDCARE PROVIDERS;

(b) A SCHOOL DISTRICT CAN APPLY TO THE BOARD FOR A WAIVER FROM THE TENANT SELECTION PROCESS DESCRIBED IN SUBSECTION (3)(a) OF THIS SECTION, TO MAINTAIN THE SOLVENCY OF A WORKFORCE HOUSING PROJECT.

(c) THE PREFERENCE FOR TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF DESCRIBED IN SUBSECTION (3)(a) OF THIS SECTION DOES NOT CONSTITUTE SOURCE OF INCOME DISCRIMINATION FOR PURPOSES OF SECTION 24-34-502.

(d) THE BOARD SHALL ESTABLISH LEASE TERMINATION AND TRANSITION GUIDELINES THAT INCLUDE:

(I) EMPLOYMENT;

REQUIREMENTS RELATED TO MAINTAINING QUALIFIED

(II) NOTICE PERIODS TO VACATE THE UNIT, UNLESS EVICTION FOR CAUSE IS WARRANTED UNRELATED TO EMPLOYMENT STATUS; AND

(III) CIRCUMSTANCES WHEN A TENANT CANNOT BE REQUIRED TO VACATE A UNIT, SUCH AS QUALIFYING TENANT LIFE EVENTS, INCLUDING RETIREMENT AFTER A SPECIFIED SERVICE PERIOD, DISABILITY, OR DEATH OF THE PRIMARY LEASEHOLDER.

(4) (a) THE BOARD SHALL ESTABLISH ENVIRONMENTAL AND BUILDING REQUIREMENTS INCLUDING REQUIRING:

(I) WATERWISE LANDSCAPING;

(II) APPLICANTS TO DESIGN WORKFORCE HOUSING PROJECTS FOR FULL ELECTRIFICATION OR, IF FULL ELECTRIFICATION IS NOT FEASIBLE, APPLICANTS TO DEMONSTRATE WHY FULL ELECTRIFICATION IS NOT FEASIBLE AND TO PROVIDE ADEQUATE PANEL CAPACITY, DEDICATED ELECTRIC PANEL SPACE, ELECTRICAL WIRE, ELECTRICAL RECEPTACLES, AND ADEQUATE PHYSICAL SPACE AS NECESSARY TO ACCOMMODATE FUTURE INSTALLATION OF HIGH-EFFICIENCY ELECTRIC APPLIANCES INCLUDING HEATING, WATER HEATING, COOKING, DRYING, AND ELECTRIC VEHICLES;

(III) COMPLIANCE WITH THE REQUIREMENTS OF THE LATEST INTERNATIONAL ENERGY CONSERVATION CODE; AND

(IV) COMPLETION OF AN ENERGY LIFE CYCLE COST ANALYSIS ALIGNED WITH STATE METHODOLOGIES.

(b) A SCHOOL DISTRICT MAY APPLY TO THE BOARD FOR A WAIVER FROM THE ENVIRONMENTAL AND BUILDING REQUIREMENTS DESCRIBED IN SUBSECTION (4)(a) OF THIS SECTION TO MAINTAIN THE SOLVENCY OF A WORKFORCE HOUSING PROJECT.

THE BOARD SHALL REQUIRE THAT APPLICANTS OBTAIN NECESSARY PROJECT BUILDING PERMITS WITHIN ONE YEAR OF NOTICE OF AWARD AND THAT CONSTRUCTION SHALL COMMENCE ON THE RELEVANT WORKFORCE HOUSING PROJECT WITHIN TWO YEARS OF NOTICE OF AWARD;

EXCEPT THAT THE BOARD MAY EXTEND THE DEADLINES DESCRIBED IN THIS SUBSECTION (5) IF THE BOARD DETERMINES THAT THE PROJECT HAS BEEN UNREASONABLY DELAYED DUE TO CIRCUMSTANCES OUTSIDE OF THE APPLICANT'S CONTROL.

(6) (a) THE BOARD SHALL ESTABLISH AN ANNUAL FINANCIAL ASSISTANCE TIMELINE FOR USE BY APPLICANTS IN APPLYING FOR FINANCIAL ASSISTANCE AND OTHERWISE MEETING FINANCIAL ASSISTANCE REQUIREMENTS AND FOR USE BY THE BOARD IN REVIEWING FINANCIAL ASSISTANCE APPLICATIONS AND MAKING FINANCIAL ASSISTANCE AWARDS.

THE TIMELINE MUST SPECIFY:

(I) A DEADLINE FOR APPLICANTS TO SUBMIT FINANCIAL ASSISTANCE APPLICATIONS TO THE BOARD THAT ALLOWS SUFFICIENT TIME FOR SUBMISSION OF THE APPLICATIONS;

(II) THE PERIOD IN WHICH THE BOARD, WITH THE SUPPORT OF THE DIVISION OF HOUSING AND DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE, SHALL REVIEW FINANCIAL ASSISTANCE APPLICATIONS AT LEAST BIANNUALLY;

(III) A DEADLINE, NO LATER THAN JUNE 1, 2027, AND NO LATER THAN JUNE 1 OF EACH YEAR THEREAFTER, FOR THE BOARD TO CREATE AN INITIAL PRIORITIZED LIST OF PROJECTS FOR THE PROVISION OF FINANCIAL ASSISTANCE IN THE NEXT STATE FISCAL YEAR; AND (IV) ANY ADDITIONAL DEADLINES OR DEADLINE EXTENSION PERIODS NEEDED TO ENSURE THAT APPLICANTS SEEKING VOTER APPROVAL TO OBTAIN MATCHING MONEY REQUIRED PURSUANT TO SUBSECTION (12) OF THIS SECTION HAVE SUFFICIENT OPPORTUNITY TO OBTAIN SUCH VOTER APPROVAL OR OTHERWISE NEEDED TO ENSURE THE EFFICIENT AND EFFECTIVE ADMINISTRATION OF THIS ARTICLE 43.8.

(7) AN APPLICANT MUST SUBMIT AN APPLICATION FOR FINANCIAL ASSISTANCE TO THE BOARD IN A FORM AND MANNER PRESCRIBED BY THE BOARD AND MUST INCLUDE THE FOLLOWING IN THE APPLICATION:

(a) A DESCRIPTION OF THE SCOPE AND NATURE OF THE WORKFORCE HOUSING PROJECT FOR WHICH THE APPLICANT IS SEEKING FINANCIAL ASSISTANCE;

(b) A DESCRIPTION OF THE ARCHITECTURAL, FUNCTIONAL, AND CONSTRUCTION STANDARDS THAT THE APPLICANT WILL APPLY TO THE WORKFORCE HOUSING PROJECT, WHETHER THOSE STANDARDS ARE CONSISTENT WITH THE WORKFORCE HOUSING GUIDELINES, AND AN EXPLANATION FOR THE USE OF ANY STANDARD THAT THE APPLICANT WILL APPLY TO THE WORKFORCE HOUSING PROJECT THAT IS NOT CONSISTENT WITH THE WORKFORCE HOUSING GUIDELINES;

(c) THE ESTIMATED AMOUNT OF FINANCIAL ASSISTANCE THAT THE APPLICANT NEEDS FOR THE WORKFORCE HOUSING PROJECT AND THE FORM AND AMOUNT OF MATCHING MONEY THAT THE APPLICANT WILL PROVIDE FOR THE PROJECT;

(d) A PLAN BY THE APPLICANT TO MAINTAIN THE PROJECT OVER TIME THAT INCLUDES, AT A MINIMUM, THE ESTABLISHMENT OF A CAPITAL RENEWAL BUDGET AND A COMMITMENT TO MAKE ANNUAL CONTRIBUTIONS TO A CAPITAL RENEWAL RESERVE WITHIN A SCHOOL DISTRICT'S CAPITAL RESERVE FUND OR ANY FUNCTIONALLY SIMILAR RESERVE FUND SEPARATELY MAINTAINED BY AN APPLICANT THAT IS NOT A SCHOOL DISTRICT;

(e) A STATEMENT REGARDING THE MEANS BY WHICH THE APPLICANT INTENDS TO PROVIDE MATCHING MONEY REQUIRED FOR THE PROJECTS, INCLUDING MEANS SUCH AS VOTER-APPROVED GENERAL OBLIGATION BONDS OR OTHER MULTIPLE-FISCAL YEAR DEBT OR OTHER FINANCIAL OBLIGATIONS; SCHOOL DISTRICT ENTERPRISE REVENUE BONDS AS DESCRIBED IN SECTION 22-32-124.7 (2); REVENUE BONDS AS DESCRIBED IN SECTION 22-32-124.7 (3); LEASE OR LEASE-PURCHASE FINANCING, GIFTS, GRANTS, DONATIONS; OR ANY OTHER MEANS OF FINANCING PERMITTED BY LAW; OR THE INTENT OF THE APPLICANT TO SEEK A REDUCTION OF THE MATCHING MONEY REQUIREMENT PURSUANT TO SUBSECTION (13) OF THIS SECTION. IF AN APPLICANT INTENDS TO RAISE MATCHING MONEY BY OBTAINING VOTER APPROVAL TO ISSUE BONDS OR TO ENTER INTO A SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT THAT CONSTITUTES AN INDEBTEDNESS OR MULTIPLE FISCAL YEAR FINANCIAL OBLIGATION OF THE DISTRICT AS AUTHORIZED BY SECTION 22-32-127, IT SHALL INDICATE WHETHER IT HAS RECEIVED THE REQUIRED VOTER APPROVAL OR, IF THE ELECTION HAS NOT ALREADY BEEN HELD, THE ANTICIPATED DATE OF THE ELECTION.

(f) COORDINATE GOVERNMENTAL ORGANIZATIONS THAT PROVIDE AFFORDABLE HOUSING IN ORDER TO MORE EFFICIENTLY OR EFFECTIVELY PROVIDE SUCH FACILITIES OR SERVICES, INCLUDING A DESCRIPTION OF ANY FINANCIAL COMMITMENT RECEIVED FROM ANY SUCH ENTITY OR ORGANIZATION THAT WILL ALLOW BETTER LEVERAGING OF ANY FINANCIAL ASSISTANCE AWARDED;

A DESCRIPTION OF ANY EFFORTS BY THE APPLICANT TO WORKFORCE ENTITIES HOUSING OR PROJECTS WITH COMMUNITY - BASED OR LOCAL OTHER

(g) A THIRTY-YEAR OPERATING PLAN THAT DEMONSTRATES THE PROJECT'S FINANCIAL VIABILITY, INCLUDING PROJECTED RENTAL INCOME, VACANCY RATES, OPERATING EXPENSES, DEBT SERVICE COVERAGE RATIO, AND CAPITAL REPLACEMENT RESERVES;

(h) A MARKET STUDY VERIFYING THE DEMAND FOR THE WORKFORCE HOUSING INCLUDING THE PROPOSED DWELLING UNIT MIX AND RENT LEVELS, THROUGH METHODS INCLUDING A SURVEY OF CURRENT TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF AND AN ANALYSIS OF THE LOCAL RENTAL MARKET;

(i) A CERTIFICATION BY THE APPLICANT THAT ITS TENANT ELIGIBILITY AND PRIORITIZATION POLICIES FOR A WORKFORCE HOUSING PROJECT FINANCED UNDER THIS ARTICLE 43.8, WHILE ESTABLISHED IN THE APPLICANT'S DISCRETION, OTHERWISE ELIGIBLE APPLICANTS SOLELY ON THE BASIS THAT THE APPLICANT IS EMPLOYED BY A CHARTER SCHOOL AUTHORIZED BY OR OPERATING WITHIN THE APPLICANT'S SCHOOL DISTRICT. NOTHING IN THIS SUBSECTION (7)(i) REQUIRES AN APPLICANT TO GUARANTEE PLACEMENT, ESTABLISH QUOTAS, OR LIMIT THE APPLICANT'S AUTHORITY TO ADOPT NEUTRAL, CONSISTENT WITH STATE AND FEDERAL LAW.

OBJECTIVE DO NOT ELIGIBILITY EXCLUDE OR OR DISADVANTAGE PRIORITIZATION CRITERIA

(j) ANY OTHER INFORMATION THAT THE BOARD MAY REQUIRE FOR THE EVALUATION OF THE PROJECT.

(8) THE BOARD SHALL PRIORITIZE, IN DESCENDING ORDER OF IMPORTANCE, APPLICATIONS THAT DESCRIBE WORKFORCE HOUSING PROJECTS DEEMED ELIGIBLE FOR FINANCIAL ASSISTANCE THAT:

(a) ARE LOCATED IN JURISDICTIONS WITH DOCUMENTED HOUSING SHORTAGES RESULTING IN CHALLENGES RETAINING AND ATTRACTING SUFFICIENT TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF TO PROVIDE CURRENT AND PLANNED SERVICES;

(b) WILL REDUCE THE HOUSING COST BURDEN ON CURRENT TEACHERS AND OTHER SCHOOL DISTRICT AND PUBLIC SCHOOL STAFF;

(c) HAVE HIGH FINANCIAL FEASIBILITY AND THE ABILITY TO MAINTAIN POSITIVE CASH FLOW WITHOUT ONGOING SUBSIDIES OR SUPPORT;

(d) ARE PROPOSED BY APPLICANTS THAT DEMONSTRATE SIGNIFICANT APPLICANT EFFORTS TO ADDRESS PROJECT COSTS BEYOND OPERATING INCOME, SUCH AS LAND OR PARTNERSHIP CONTRIBUTIONS AND MULTIJURISTICTIONAL PARTICIPATION;

(e) HAVE A PROPERTY MANAGEMENT PLAN SUPPORTING THE ASSUMPTIONS IN THE THIRTY-YEAR OPERATION PLAN REQUIRED PURSUANT TO SUBSECTION (7)(g) OF THIS SECTION; AND

(f) ARE THE MOST ADVANCED IN THE DEVELOPMENT PROCESS.

(9) THE BOARD MAY REQUEST THAT THE DIVISION OF HOUSING AND DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE UNDERTAKE A PRELIMINARY REVIEW OF ANY OR ALL APPLICATIONS FOR FINANCIAL ASSISTANCE, AND THE BOARD MAY ALSO REQUEST THAT ANY DEPARTMENT, AGENCY, OR INSTITUTION OF STATE GOVERNMENT WITH EXPERTISE OR EXPERIENCE IN HOUSING AFFORDABILITY OR CONSTRUCTION PROVIDE ASSISTANCE TO THE BOARD WITH REGARD TO THE EVALUATION OF THE APPLICATIONS FOR FINANCIAL ASSISTANCE.

(10) (a) AFTER COMPLETING THE INITIAL PRIORITIZED LIST OF PROJECTS FOR THE PROVISION OF FINANCIAL ASSISTANCE PURSUANT TO SUBSECTION (6) OF THIS SECTION, THE BOARD SHALL SUBMIT THAT LIST TO THE STATE BOARD AND THE STATE HOUSING BOARD. THE PRIORITIZED LIST MUST INCLUDE:

(I) THE BOARD'S DECISION AS TO THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE TO BE PROVIDED; AND

(II) A STATEMENT OF THE SOURCE AND AMOUNT OF APPLICANT MATCHING MONEY FOR EACH RECOMMENDED PROJECT BASED UPON INFORMATION PROVIDED BY THE APPLICANT.

(b) UPON RECEIVING THE BOARD'S INITIAL PRIORITIZED LIST OF PROJECTS FOR THE PROVISION OF FINANCIAL ASSISTANCE PURSUANT TO SUBSECTION DETERMINES A FINAL PRIORITIZED LIST OF PROJECTS FOR WHICH THE BOARD WILL PROVIDE FINANCIAL ASSISTANCE PURSUANT TO SUBSECTION (11)(a) OF THIS SECTION, THE STATE BOARD AND THE STATE HOUSING BOARD MAY PROVIDE COMMENTS TO THE BOARD ON THE LIST OF PROJECTS.

(11) (a) NO LATER THAN JULY 15, 2027, AND EACH JULY 15 THEREAFTER, THE BOARD SHALL DETERMINE A FINAL PRIORITIZED LIST OF PROJECTS FOR WHICH THE BOARD WILL PROVIDE FINANCIAL ASSISTANCE.

(b) (I) IN DETERMINING THE AMOUNT OF EACH RECOMMENDED AWARD OF FINANCIAL ASSISTANCE, THE BOARD SHALL SEEK TO BE AS EQUITABLE AS PRACTICABLE BY CONSIDERING THE TOTAL FINANCIAL CAPACITY OF EACH APPLICANT.

(10)(a) OF THIS SECTION, AND BEFORE THE BOARD

(II) IN DETERMINING THE AMOUNT OF EACH AWARD OF FINANCIAL ASSISTANCE, THE BOARD SHALL SEEK TO ADDRESS THE MOST CRITICAL EDUCATION WORKFORCE HOUSING NEEDS, OPTIMIZE THE USE OF LIMITED STATE GRANT FUNDING, AND PROVIDE THE MAXIMUM NUMBER OF NEW HOUSING UNITS.

(c) THE BOARD MAY DECIDE THAT A SPECIFIC PROJECT SHALL ONLY RECEIVE FINANCIAL ASSISTANCE IF A HIGHER PRIORITY PROJECT OR GROUP OF PROJECTS BECOMES INELIGIBLE FOR FINANCIAL ASSISTANCE DUE TO THE INABILITY OF AN APPLICANT TO RAISE THE REQUIRED MATCHING MONEY BY A DEADLINE PRESCRIBED BY THE BOARD AS A CONDITION OF A FINANCIAL ASSISTANCE AWARD FOR THE HIGHER PRIORITY PROJECT OR GROUP OF PROJECTS.

(12) (a) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (13) OF THIS SECTION, THE BOARD MAY APPROVE OF FINANCIAL ASSISTANCE FOR A WORKFORCE HOUSING PROJECT ONLY IF THE APPLICANT PROVIDES MATCHING MONEY IN AN AMOUNT AT LEAST EQUAL TO THE PORTION OF THE TOTAL DEVELOPMENT COST OF THE WORKFORCE HOUSING PROJECT THAT CAN BE FINANCED WITH AND SUPPORTED BY NET OPERATING INCOME GENERATED FROM THE PROJECT.

(b) STATE FINANCIAL ASSISTANCE FOR A WORKFORCE HOUSING PROJECT SHALL NOT EXCEED, BUT MAY BE LESS THAN, THE PORTION OF THE DEVELOPMENT COST THAT EXCEEDS THE AMOUNT THAT THE APPLICANT CAN FINANCE AND SUPPORT WITH THE WORKFORCE HOUSING PROJECT'S NET OPERATING INCOME.

AMOUNT OF THE WORKFORCE HOUSING PROJECT'S TOTAL

(c) AS USED IN THIS SUBSECTION (12), UNLESS THE CONTEXT OTHERWISE REQUIRES:

(I) "NET OPERATING INCOME" MEANS GROSS RENTAL REVENUES LESS ALL NECESSARY AND CUSTOMARY OPERATING EXPENSES, INCLUDING PROPERTY MANAGEMENT, MAINTENANCE, INSURANCE, AND REQUIRED OPERATING AND REPLACEMENT RESERVES, AND MUST BE CALCULATED AFTER APPLICATION OF ANY REQUIRED DEBT SERVICE COVERAGE RATIO AND THE FUNDING OF ALL REQUIRED BOND OR LEASE-PURCHASE DEBT SERVICE RESERVES.

(II) "TOTAL DEVELOPMENT COSTS" MEANS THE COSTS DETERMINED BY THE BOARD TO BE NECESSARY FOR AN APPLICANT TO PLAN, FINANCE, ACQUIRE, CONSTRUCT, AND PLACE INTO OPERATION A WORKFORCE HOUSING PROJECT.

(13) (a) AN APPLICANT MAY APPLY TO THE BOARD FOR A REDUCTION OF THE MATCHING MONEY REQUIREMENT SPECIFIED IN SUBSECTION (12) OF THIS SECTION.

(b) THE BOARD MAY GRANT A REDUCTION IF IT DETERMINES THAT COMPLYING WITH THE MATCHING MONEY REQUIREMENT WOULD SIGNIFICANTLY IMPAIR THE FINANCIAL FEASIBILITY OF THE PROJECT OR IMPOSE AN UNDUE BURDEN ON THE APPLICANT, CONSIDERING LOCAL HOUSING CONDITIONS, FINANCIAL CAPACITY, AND DEMONSTRATED WORKFORCE HOUSING NEED.

(14) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE 43.8, IF A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT TERMINATES BEFORE ALL CERTIFICATES OF PARTICIPATION EVIDENCING UNDIVIDED INTERESTS IN PAYMENTS UNDER THAT AGREEMENT ARE PAID IN FULL AND TITLE TO A WORKFORCE HOUSING PROJECT IS TRANSFERRED TO THE STATE, ANY AFFORDABILITY COVENANT, ANY OTHER COVENANT, AND ANY OTHER RESTRICTION ON THE USE OF THAT WORKFORCE HOUSING PROJECT THAT IS IMPOSED BY OR IS ENTERED INTO OR IMPOSED IN ORDER TO COMPLY WITH THIS ARTICLE 43.8, AUTOMATICALLY TERMINATES UPON TERMINATION OF THAT FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT.

22-43.8-108. Financial assistance - grants - financed purchase of an asset agreements.

(1) THE BOARD MAY PROVIDE FINANCIAL ASSISTANCE FOR THOSE WORKFORCE HOUSING PROJECTS FOR WHICH THE BOARD HAS AUTHORIZED THE PROVISION OF FINANCIAL ASSISTANCE PURSUANT TO SECTION 22-43.8-107 BY PROVIDING MATCHING GRANTS FROM THE FUND.

(2) SUBJECT TO THE FOLLOWING REQUIREMENTS AND LIMITATIONS, THE BOARD MAY ALSO INSTRUCT THE STATE TREASURER TO ENTER INTO A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT TO PROVIDE FINANCIAL ASSISTANCE TO APPLICANTS BY FINANCING WORKFORCE HOUSING PROJECTS:

(a) THE MAXIMUM TOTAL AMOUNT OF ANNUAL PAYMENTS PAYABLE BY THE STATE MINUS ANY MATCHING MONEY DURING ANY FISCAL YEAR UNDER THE TERMS OF ALL OUTSTANDING FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENTS AS INSTRUCTED BY THE BOARD PURSUANT TO THIS SUBSECTION (2) IS:

(I) TWELVE MILLION DOLLARS FOR THE 2027-28 STATE FISCAL YEAR;

(II) TWENTY-FOUR MILLION DOLLARS FOR THE 2028-29 STATE FISCAL YEAR; AND

(III) THIRTY-SIX MILLION DOLLARS FOR THE 2029-30 STATE FISCAL YEAR AND EACH STATE FISCAL YEAR THEREAFTER.

(b) WHENEVER THE STATE TREASURER ENTERS INTO A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT PURSUANT TO THIS SUBSECTION (2) TO FINANCE WORKFORCE HOUSING, THE BOARD SHALL, UPON RECEIVING APPROVAL OF THE STATE TREASURER PURSUANT TO SUBSECTION (2)(e) OF THIS SECTION, ENTER INTO A SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT FOR THE WORKFORCE HOUSING PROJECT WITH THE APPLICANT THAT WILL USE THE WORKFORCE HOUSING. THE SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT:

(I) MUST REQUIRE THE APPLICANT TO PERFORM FOR THE STATE ALL DUTIES OF THE STATE TO MAINTAIN AND OPERATE THE WORKFORCE HOUSING PROJECT THAT ARE REQUIRED BY THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT AND TO MAKE PERIODIC RENTAL PAYMENTS TO THE STATE, UNLESS THE APPLICANT MAKES A PAYMENT IN AN AMOUNT EQUAL TO THE AMOUNT OF REQUIRED MATCHING MONEY IN ANOTHER FASHION, WHICH PAYMENTS SHALL BE CREDITED TO THE FUND AS MATCHING MONEY OF THE APPLICANT;

(II) MUST PROVIDE FOR THE TRANSFER OF OWNERSHIP OF THE WORKFORCE HOUSING FROM THE STATE TO THE APPLICANT UPON THE FULFILLMENT OF BOTH THE STATE'S OBLIGATIONS UNDER THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT AND THE APPLICANT'S OBLIGATIONS UNDER THE SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT; AND

(III) MAY PROVIDE THAT THE LEGAL OBLIGATION OF AN APPLICANT TO MAKE PERIODIC RENTAL PAYMENTS IS SUBJECT TO THE ANNUAL APPROPRIATION OF MONEY FOR THAT PURPOSE BY THE APPLICANT IF THE ABSENCE MULTIPLE-YEAR FISCAL OBLIGATION WITHOUT VOTER APPROVAL IN ADVANCE IN VIOLATION OF SECTION 20 (4)(b) OF ARTICLE X OF THE STATE CONSTITUTION.

OF SUCH A PROVISION WOULD CREATE A DISTRICT

(c) A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION SUBSECTION (2) MUST PROVIDE THAT ALL PAYMENT OBLIGATIONS OF THE STATE UNDER THE AGREEMENT ARE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY AND THAT OBLIGATIONS SHALL NOT BE DEEMED OR CONSTRUED AS CREATING AN INDEBTEDNESS OR MULTIPLE AGREEMENT ENTERED INTO PURSUANT TO THIS FISCAL YEAR FINANCIAL OBLIGATION OF THE STATE WITHIN THE MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR THE LAWS OF THE STATE CONCERNING OR LIMITING THE CREATION OF INDEBTEDNESS OR MULTIPLE FISCAL YEAR FINANCIAL OBLIGATION BY THE STATE.

(d) (I) (A) A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT ENTERED INTO BY THE STATE TREASURER ON BEHALF OF THE STATE PURSUANT TO THIS SUBSECTION (2) MAY CONTAIN TERMS, PROVISIONS, AND CONDITIONS THE STATE TREASURER DEEMS APPROPRIATE AND MAY FURTHER PROVIDE FOR THE ISSUANCE, DISTRIBUTION, AND SALE OF INSTRUMENTS EVIDENCING RIGHTS TO RECEIVE RENTALS AND OTHER PAYMENTS MADE AND TO BE MADE UNDER THE AGREEMENT.

(B) THIS SUBSECTION (2)(d) ALLOWS THE STATE TO RECEIVE TITLE TO THE REAL AND PERSONAL PROPERTY THAT IS THE SUBJECT OF A FINANCIAL PURCHASE OF AN ASSET OR CERTIFICATION OF PARTICIPATION AGREEMENT ON OR PRIOR TO THE EXPIRATION OF THE ENTIRE TERM OF THE AGREEMENT, INCLUDING ALL OPTIONAL RENEWAL TERMS.

(II) A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION SUBSECTION (2) SHALL NOT BE NOTES, BONDS, OR ANY OTHER EVIDENCE OF INDEBTEDNESS OR MULTIPLE FISCAL YEAR FINANCIAL OBLIGATION OF THE STATE WITHIN THE MEANING OF ANY PROVISION OF THE STATE CONSTITUTION OR THE LAWS OF THE STATE CONCERNING OR LIMITING THE CREATION OF INDEBTEDNESS OR MULTIPLE FISCAL YEAR OBLIGATION BY THE STATE.

AGREEMENT ENTERED INTO PURSUANT TO THIS

(III) INTEREST PAID UNDER A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT ON BEHALF OF THE STATE PURSUANT TO THIS SUBSECTION (2), INCLUDING INTEREST REPRESENTED BY SUCH INSTRUMENTS, SHALL BE EXEMPT FROM COLORADO INCOME TAX AND ALL OTHER TAXATION AND ASSESSMENTS BY THE STATE OR ANY POLITICAL SUBDIVISION OF THE STATE.

(e) THE BOARD MAY ONLY ENTER INTO A SUB-FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT ON BEHALF OF THE STATE PURSUANT TO THIS SUBSECTION TREASURER HAS REVIEWED THE AGREEMENT AND PROVIDED WRITTEN AUTHORIZATION TO THE BOARD TO ENTER INTO THE AGREEMENT.

(2) IF THE STATE

(f) IF THE STATE TREASURER DEEMS IT NECESSARY OR ADVISABLE, THE STATE TREASURER MAY ENTER INTO A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT PURSUANT TO THIS SUBSECTION (2) FOR ONLY A PORTION OF A WORKFORCE HOUSING PROJECT FOR ALL OR A PORTION OF A DIFFERENT WORKFORCE HOUSING PROJECT OR FOR OTHER PROPERTY OF A SCHOOL DISTRICT.

(g) NOTWITHSTANDING THE AUTHORITY OF THE BOARD TO INSTRUCT THE STATE TREASURER TO ENTER INTO A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT PURSUANT TO THIS SUBSECTION (2), IN ORDER TO ENSURE THAT THE FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT IS ENTERED INTO UNDER FAVORABLE FINANCIAL MARKET CONDITIONS, THE STATE TREASURER SHALL HAVE SOLE DISCRETION TO DETERMINE THE TIMING OF THE STATE TREASURER'S ENTRY INTO ANY FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT PURSUANT TO THIS SUBSECTION (2).

AN APPLICANT SHALL NOT USE ANY MONEY RECEIVED THROUGH FINANCIAL ASSISTANCE PROVIDED PURSUANT TO THIS ARTICLE 43.8 FOR A WORKFORCE HOUSING PROJECT THAT RECEIVES PUBLIC SUBSIDIES THROUGH A LOCAL, STATE, OR FEDERAL GOVERNMENT PROGRAM THAT IS PRIMARILY INTENDED TO SUPPORT THE DEVELOPMENT OF INCOME-RESTRICTED RENTAL HOUSING FOR HOUSEHOLDS WITH INCOMES AT OR BELOW SIXTY PERCENT OF THE AREA MEDIAN INCOME.

(4) (a) AS SOON AS PRACTICABLE, UPON DETERMINING THAT IT WILL TERMINATE A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS SECTION, THE STATE TREASURER SHALL PROVIDE WRITTEN NOTICE OF THAT DETERMINATION TO:

(I) THE BOARD;

(II) THE COLORADO HOUSING AND FINANCE AUTHORITY CREATED IN PART 7 OF ARTICLE 4 OF TITLE 29;

(III) CREATED IN SECTION 24-48.5-101;

THE COLORADO OFFICE OF ECONOMIC DEVELOPMENT

(IV) THE DEPARTMENT OF EDUCATION CREATED IN SECTION 24-1-115;

(V) THE DIVISION OF HOUSING; AND

(VI) ANY PARTIES TO A SUBLEASE AGREEMENT RELATED TO THE LEASE.

(b) NOTWITHSTANDING SUBSECTION (4)(a) OF THIS SECTION, FAILURE OF THE STATE TREASURER TO PROVIDE NOTICE PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION DOES NOT PREVENT THE STATE TREASURER FROM TERMINATING A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT ENTERED INTO PURSUANT TO SUBSECTION (2) OF THIS SECTION AND DOES NOT CREATE STATE LIABILITY OR OBLIGATION.

Reporting requirements - auditing by state auditor.

(1) NOTWITHSTANDING SECTION 24-1-136 (11)(a)(I), NO LATER THAN FEBRUARY 15, 2028, AND NO LATER THAN EACH FEBRUARY 15 THEREAFTER, THE BOARD SHALL PRESENT A WRITTEN REPORT TO THE EDUCATION REPRESENTATIVES AND THE SENATE, OR ANY SUCCESSOR COMMITTEES, REGARDING THE PROVISION OF FINANCIAL ASSISTANCE TO APPLICANTS PURSUANT TO THIS ARTICLE 43.8. THE REPORT MUST INCLUDE, AT A MINIMUM:

AND FINANCE COMMITTEES OF THE HOUSE OF

(a) AN ACCOUNTING OF THE FINANCIAL ASSISTANCE PROVIDED THROUGH THE PRIOR FISCAL YEAR THAT INCLUDES:

(I) A STATEMENT OF THE AGGREGATE AMOUNT OF FINANCIAL ASSISTANCE AWARDED THROUGH THE PRIOR FISCAL YEAR, INCLUDING STATEMENTS OF THE AMOUNT OF GRANTS PROVIDED, AND THE AMOUNT OF PAYMENTS MADE AND PAYMENTS COMMITTED TO BE MADE BUT NOT YET MADE IN CONNECTION WITH A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT;

(II) A STATEMENT OF THE AGGREGATE AMOUNT OF FINANCIAL ASSISTANCE PROVIDED AS GRANTS AND THE AGGREGATE AMOUNT OF PAYMENTS MADE IN CONNECTION WITH A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT DURING THE PRIOR FISCAL YEAR;

(III) A LIST OF THE WORKFORCE HOUSING PROJECTS FOR WHICH FINANCIAL ASSISTANCE HAS BEEN PROVIDED IN ANY FISCAL YEAR, WHICH MUST INCLUDE:

(A) A BRIEF DESCRIPTION OF EACH PROJECT;

(B) A STATEMENT OF THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE PROVIDED FOR EACH PROJECT AND, WHERE APPLICABLE, THE AMOUNT OF FINANCIAL ASSISTANCE COMMITTED TO BE PROVIDED FOR BUT NOT YET PROVIDED FOR EACH PROJECT;

(C) A STATEMENT OF THE AMOUNT OF MATCHING MONEY PROVIDED BY THE APPLICANT FOR EACH PROJECT AND, WHERE APPLICABLE, THE AMOUNT OF MATCHING MONEY COMMITTED TO BE PROVIDED BY THE APPLICANT BUT NOT YET PROVIDED FOR EACH PROJECT;

AND

(D) A SUMMARY OF THE REASONS OF THE BOARD FOR PROVIDING FINANCIAL ASSISTANCE FOR THE PROJECT; AND

(IV) A LIST OF THE WORKFORCE HOUSING PROJECTS FOR WHICH FINANCIAL ASSISTANCE HAS BEEN PROVIDED DURING THE PRIOR FISCAL YEAR, WHICH MUST INCLUDE:

(A) A BRIEF DESCRIPTION OF EACH PROJECT;

(B) A STATEMENT OF THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE PROVIDED FOR EACH PROJECT; AND (C) A STATEMENT OF THE AMOUNT OF MATCHING MONEY PROVIDED BY THE APPLICANT FOR EACH PROJECT.

(b) A LIST OF THE FINANCIAL ASSISTANCE APPLICATIONS FOR WORKFORCE HOUSING PROJECTS THAT WERE DENIED FINANCIAL ASSISTANCE DURING THE PRIOR FISCAL YEAR AND THAT INCLUDES FOR EACH PROJECT:

(I) A BRIEF PROJECT DESCRIPTION;

(II) A STATEMENT OF THE AMOUNT AND TYPE OF FINANCIAL ASSISTANCE REQUESTED FOR THE PROJECT; AND

(III) A SUMMARY OF THE REASONS WHY THE BOARD DENIED FINANCIAL ASSISTANCE FOR THE PROJECT; AND

(c) AN ESTIMATE, TO THE EXTENT FEASIBLE, OF THE TOTAL AMOUNTS OF REVENUES TO BE CREDITED TO THE FUND DURING THE CURRENT FISCAL YEAR AND THE NEXT FISCAL YEAR AND FINANCIAL ASSISTANCE TO BE AWARDED DURING THE NEXT FISCAL YEAR, INCLUDING SEPARATE ESTIMATES OF THE TOTAL AMOUNTS OF FINANCIAL ASSISTANCE TO BE AWARDED AS CASH GRANTS AND UNDER THE TERMS OF A FINANCED PURCHASE OF AN ASSET OR CERTIFICATE OF PARTICIPATION AGREEMENT ENTERED INTO PURSUANT TO SECTION 22-43.8-108 (2).

THE BOARD SHALL PREPARE AND MAKE AVAILABLE ELECTRONICALLY ON THE WEBSITE OF THE DEPARTMENT A REPORT TO THE TAXPAYERS OF THE STATE REGARDING THE PROVISION OF FINANCIAL ASSISTANCE TO APPLICANTS PURSUANT TO THIS ARTICLE 43.8 DURING THE FIVE PRIOR FISCAL YEARS. THE REPORT SHALL INCLUDE, AT A MINIMUM, THE INFORMATION SPECIFIED IN SUBSECTION (1) OF THIS SECTION FOR EACH OF THE FIVE PRIOR FISCAL YEARS AND AN AGGREGATION OF ANY OF SUCH INFORMATION THAT CAN FEASIBLY BE AGGREGATED FOR THE FULL FIVE-YEAR PERIOD.

22-43.8-110. Attorney general as legal advisor.

THE ATTORNEY GENERAL SHALL ACT AS LEGAL ADVISOR FOR THE BOARD, AND WITH THE CONSENT OF THE ATTORNEY GENERAL, THE BOARD MAY EMPLOY ADDITIONAL LEGAL COUNSEL.

22-43.8-111. Tax increases not required.

NOTHING IN THIS ARTICLE 43.8 SHALL BE DEEMED TO REQUIRE A SCHOOL DISTRICT TO INCREASE TAXES.

22-43.8-112. Open records and open meetings.

IN EXERCISING THEIR POWERS AND DUTIES PURSUANT TO THIS ARTICLE 43.8, THE BOARD AND THE DIVISION OF HOUSING AND DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE ARE SUBJECT TO THE OPEN MEETINGS PROVISIONS OF THE "COLORADO SUNSHINE ACT OF 1972", PART 4 OF ARTICLE 6 OF TITLE 24, AND THE "COLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF TITLE 24.

22-43.8-113. Prioritization and selections of tenants.

APPLICANTS SHALL ESTABLISH THEIR OWN POLICIES CONCERNING THE PRIORITIZATION AND SELECTION OF TENANTS IN WORKFORCE HOUSING, THE FINANCING OF WHICH IS APPROVED PURSUANT TO THIS ARTICLE 43.8 AND SHALL ENSURE THAT THOSE POLICIES COMPLY WITH COLORADO AND FEDERAL FAIR HOUSING LAWS.

22-43.8-114. Workforce housing rental income.

AN APPLICANT THAT OBTAINS FINANCING FOR WORKFORCE HOUSING PURSUANT TO THIS ARTICLE 43.8 IS ENTITLED TO ALL RENTAL INCOME GENERATED BY THE WORKFORCE HOUSING.

Relationship of applicants and other jurisdictions.

(1) THE PROVISION OF WORKFORCE HOUSING BY AN APPLICANT IS A MATTER OF STATEWIDE CONCERN AND THEREFORE EACH COUNTY, MUNICIPALITY, OR SPECIAL DISTRICT IN WHICH A WORKFORCE HOUSING PROJECT IS LOCATED, IN CONNECTION WITH THE PROJECT, SHALL PROVIDE GOVERNMENTAL SERVICES OF THE SAME CHARACTER AND TO THE SAME EXTENT AS SERVICES PROVIDED FOR OTHER RESIDENTS OF THE COUNTY, MUNICIPALITY, OR SPECIAL DISTRICT.

(2) NOTWITHSTANDING THE PROVISIONS SET FORTH IN SUBSECTION

(1) OF THIS SECTION, AN APPLICANT MAY ENTER INTO CONTRACTUAL OR INTERGOVERNMENTAL AGREEMENTS WITH ANY COUNTY, MUNICIPALITY, OR SPECIAL DISTRICT FOR THE PROVISION OF ANY ADDITIONAL COMMUNITY, MUNICIPAL, OR PUBLIC FACILITIES OR SERVICES NECESSARY OR DESIRABLE FOR ANY WORKFORCE HOUSING PROJECT.

(3) NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE STATE, ANY STATE AGENCY, ANY COUNTY, AND ANY MUNICIPALITY IN WHICH A WORKFORCE HOUSING PROJECT IS OR IS TO BE LOCATED, AND ANY BOARD, AUTHORITY, AGENCY, DEPARTMENT, COMMISSION, PUBLIC CORPORATION, OR INSTRUMENTALITY OF SUCH COUNTY OR MUNICIPALITY, HAS THE POWER TO LEND OR GRANT MONEY OR ANY OTHER FORM OF PROPERTY, REAL, PERSONAL, OR MIXED, TO THE APPLICANT AND TO ENTER INTO CONTRACTS TO MAKE SUCH LOANS AND GRANTS, ALL UPON WHICH SUCH TERMS AND CONDITIONS AS THE APPLICANT AND THE STATE, STATE AGENCY, COUNTY, OR MUNICIPALITY MAY AGREE.

22-43.8-116. Agreement of the state not to limit or alter rights of obligees.

THE STATE PLEDGES AND AGREES WITH THE HOLDERS OF ANY CERTIFICATES OF PARTICIPATION, BOND, OR OTHER FINANCIAL OBLIGATION ISSUED OR ENTERED INTO BY THE STATE TREASURER, THE BOARD, A TRUSTEE, AN APPLICANT, OR AN ENTERPRISE OF AN APPLICANT AND ANY PERSON WHO ENTERS INTO A CONTRACT WITH ANY OF THOSE PERSONS OR ENTITIES IN RELATION TO WORKFORCE HOUSING THAT THE STATE WILL NOT IMPAIR THE RIGHTS OF ANY SUCH PERSON WITH RESPECT TO ANY SUCH CERTIFICATES OF PARTICIPATION, BOND, OTHER FINANCIAL OBLIGATION, OR CONTRACT. THE STATE FURTHER PLEDGES AND AGREES THAT IT WILL NOT IMPAIR THE RIGHTS OR REMEDIES OF THE HOLDERS OF ANY CERTIFICATE OF PARTICIPATION, BOND, OR OTHER FINANCIAL OBLIGATION ENTERED INTO BY THE STATE TREASURER, THE BOARD, A TRUSTEE, AN APPLICANT, OR AN ENTERPRISE OF AN APPLICANT IN CONNECTION WITH WORKFORCE HOUSING OR IMPAIR THE RIGHTS AND REMEDIES OF ANY PERSON WHO ENTERS INTO A CONTRACT WITH ANY OF THOSE PERSONS OR ENTITIES IN RELATION TO WORKFORCE HOUSING UNLESS AND UNTIL THE CERTIFICATES OF PARTICIPATION, BONDS, OTHER FINANCIAL OBLIGATIONS, AND OBLIGATIONS UNDER SUCH CONTRACTS HAVE BEEN PAID OR UNTIL ADEQUATE PROVISIONS FOR PAYMENT HAVE BEEN MADE. THE STATE TREASURER, A TRUSTEE, AN APPLICANT, AND AN ENTERPRISE OF AN APPLICANT MAY INCLUDE THIS PROVISION AND UNDERTAKING FOR THE STATE IN ALL SUCH CERTIFICATES OF PARTICIPATION, BONDS, FINANCIAL OBLIGATIONS, OR CONTRACTS ISSUED OR ENTERED INTO IN RELATION TO WORKFORCE HOUSING.

22-43.8-117. Authority of applicants and other local governments.

(1) NOTHING IN THIS ARTICLE 43.8 SHALL BE CONSTRUED TO ALTER THE AUTHORITY OF A LOCAL GOVERNMENT IN APPLYING AND ENFORCING APPLICABLE INCLUSIONARY ZONING ORDINANCES, DEED RESTRICTIONS, COMMUNITY BENEFIT AGREEMENTS, DEVELOPMENT AGREEMENTS, OR OTHER AFFORDABLE HOUSING POLICIES AND STANDARDS.

(2) NOTHING IN THIS ARTICLE 43.8 LIMITS THE AUTHORITY OF AN APPLICANT TO PARTICIPATE IN AFFORDABLE HOUSING PROGRAMS OR FINANCING MECHANISMS, INCLUDING THE LOW-INCOME HOUSING TAX CREDIT PROGRAM OR PRIVATE ACTIVITY BOND FINANCING, IN CONNECTION WITH WORKFORCE HOUSING PROJECTS THAT DO NOT RECEIVE FINANCIAL ASSISTANCE PURSUANT TO THIS ARTICLE 43.8.

22-43.8-118. No action maintainable.

ANY LEGAL OR ADMINISTRATIVE PROCEEDING TO REVIEW ANY ACTS OR PROCEEDINGS BY THE STATE TREASURER, THE BOARD, A TRUSTEE, AN APPLICANT, AN ENTERPRISE OF AN APPLICANT, OR ANY OTHER PERSON IN RELATION IRREGULARITIES OR JURISDICTIONAL DEFECTS, SHALL NOT BE MAINTAINED UNLESS COMMENCED WITHIN THIRTY DAYS AFTER THE PERFORMANCE OF THE ACT OR PROCEEDINGS OR THE EFFECTIVE DATE OF THE ACTS OR PROCEEDINGS, PERPETUALLY BARRED.

TO WORKFORCE WHICHEVER HOUSING , OCCURS WHETHER FIRST, AND BASED IS UPON THEREAFTER Judicial examination of powers, acts, proceedings, or contracts of an applicant.

IN ITS DISCRETION, THE STATE TREASURER, THE BOARD, A TRUSTEE, AN APPLICANT OR AN ENTERPRISE OF AN APPLICANT MAY FILE A PETITION AT ANY TIME IN A DISTRICT COURT IN THE STATE SEEKING A JUDICIAL EXAMINATION AND DETERMINATION OF ANY POWER CONFERRED TO ANY OF THOSE PERSONS OR ENTITIES BY THIS SENATE BILL EXERCISED OR THAT MAY BE EXERCISED BY ANY OF THOSE PERSONS OR ENTITIES, OR ANY ACT, PROCEEDING OBLIGATION, OR CONTRACT OF ANY OF THOSE PERSONS OR ENTITIES, WHETHER OR NOT THE ACT OR PROCEEDING HAS OCCURRED OR THE CONTRACT HAS BEEN EXECUTED. THE JUDICIAL EXAMINATION AND DETERMINATION MUST BE CONDUCTED IN SUBSTANTIALLY THE MANNER SET FORTH IN SECTION 32-4-540; EXCEPT THAT THE NOTICE REQUIRED MUST BE PUBLISHED ONCE A WEEK FOR THREE CONSECUTIVE WEEKS AND THE HEARING MUST BE HELD NOT LESS THAN THIRTY DAYS NOR MORE THAN FORTY DAYS AFTER THE FILING OF THE PETITION.

, ANY POWER

SECTION 5. In Colorado Revised Statutes, add 22-41-101.5 as follows:

22-41-101.5. Public school fund income stabilization account - definitions.

(1) THERE IS CREATED WITHIN THE PUBLIC SCHOOL FUND THE PUBLIC SCHOOL FUND INCOME STABILIZATION ACCOUNT. THE ACCOUNT CONSISTS OF MONEY CREDITED TO THE ACCOUNT PURSUANT TO SUBSECTION (3) OF THIS SECTION AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE ACCOUNT.

(2) THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE ACCOUNT TO THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT.

(3) FOR ANY STATE FISCAL YEAR IN WHICH, AFTER CREDITING MONEY FROM THE PUBLIC SCHOOL FUND PURSUANT TO SECTION 22-41-102

(3) FOR THAT STATE FISCAL YEAR, THE AMOUNT OF INTEREST AND INCOME REMAINING IN THE FUND, CALCULATED PURSUANT TO SECTION 22-41-102 (3)(l)(II), EXCEEDS FORTY MILLION DOLLARS, THE STATE TREASURER SHALL CREDIT FROM THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT TO THE ACCOUNT AN AMOUNT EQUAL TO THAT EXCESS.

(4) MONEY IN THE ACCOUNT SHALL ONLY BE APPROPRIATED OR TRANSFERRED:

(a) IN THE MANNER AND FOR THE PURPOSES DESCRIBED IN SECTION 22-41-102 (3)(k), IN A FISCAL YEAR IN WHICH THERE IS NOT OTHERWISE SUFFICIENT MONEY IN THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT TO APPROPRIATE OR CREDIT THE AMOUNT REQUIRED PURSUANT TO SECTION 22-41-102 (3)(k)(I) AND AT LEAST FORTY-ONE MILLION DOLLARS PURSUANT TO SECTION 22-41-102 (3)(k)(II), AND IN AN AMOUNT NECESSARY TO APPROPRIATE OR CREDIT THE AMOUNT REQUIRED PURSUANT TO SECTION 22-41-102 (3)(k)(I) AND AT LEAST FORTY-ONE MILLION DOLLARS PURSUANT TO SECTION 22-41-102 (3)(k)(II);

(b) IN THE MANNER AND FOR THE PURPOSE DESCRIBED IN SECTION 22-41-102 (3)(l), IN A FISCAL YEAR IN WHICH THERE IS NOT OTHERWISE SUFFICIENT MONEY IN THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT TO CREDIT FORTY MILLION DOLLARS TO THE STATE PUBLIC SCHOOL FUND CREATED IN SECTION 22-54-114 PURSUANT TO

SECTION 22-41-102 (3)(l), AND IN AN AMOUNT NECESSARY TO ENSURE THAT FORTY MILLIONS DOLLARS IS CREDITED TO THE STATE PUBLIC SCHOOL FUND CREATED IN SECTION 22-54-114 PURSUANT TO SECTION 22-41-102 (3)(l) FROM THE PUBLIC SCHOOL FUND; OR

(c) TO RESTORE ANY LOSS TO THE PRINCIPAL OF THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT RESULTING FROM AN AGGREGATE LOSS OF PRINCIPAL AS DEFINED IN SECTION 22-41-104 (2).

(5) (a) MONEY IN THE ACCOUNT IS NOT THE PRINCIPAL OF THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT AND THE USE OF THE MONEY IN THE ACCOUNT NEED NOT COMPLY WITH THE REQUIREMENTS OF SECTION 22-41-102, BUT IS OTHERWISE CONSIDERED TO BE A PART OF THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT FOR PURPOSES OF THE REQUIREMENTS OF THIS ARTICLE 41.

(b) MONEY IN THE ACCOUNT MUST BE INVESTED IN THE SAME MANNER AS THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT.

(c) MONEY IN THE ACCOUNT IS CONSIDERED TO BE IN THE PORTION OF THE PUBLIC SCHOOL FUND THAT IS NOT THE ACCOUNT FOR PURPOSES OF DETERMINING THE AMOUNTS TO BE CREDITED OR APPROPRIATED FROM THE PUBLIC SCHOOL FUND PURSUANT TO SECTION 22-41-102 (3).

(6) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, STABILIZATION ACCOUNT CREATED IN SUBSECTION (1) OF THIS SECTION.

SECTION 6. In Colorado Revised Statutes, 22-41-102, add (3)(l) "ACCOUNT" MEANS THE PUBLIC SCHOOL FUND INCOME as follows:

22-41-102. Fund inviolate - definition.

(3) (l) (I) ON NOVEMBER 1, 2026, AND EACH NOVEMBER 1 THEREAFTER, AFTER MONEY IN THE PUBLIC SCHOOL FUND HAS BEEN APPROPRIATED AND CREDITED PURSUANT TO SUBSECTION (3)(k) OF THIS SECTION FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR, THE LESSER OF INTEREST AND INCOME REMAINING IN THE FUND UP TO A TOTAL OF TWO AND ONE-HALF PERCENT OF TOTAL FUND VALUE AS MEASURED BEFORE ANY MONEY WAS CREDITED OR APPROPRIATED PURSUANT TO THIS SUBSECTION (3) FOR THE IMMEDIATELY PRECEDING STATE FISCAL YEAR OR FORTY MILLION DOLLARS IS CREDITED TO THE STATE PUBLIC SCHOOL FUND CREATED IN SECTION 22-54-114; AND

(II) AS USED IN THIS SUBSECTION (3)(l), THE AMOUNT OF INTEREST AND INCOME REMAINING IN THE FUND IS THE DIFFERENCE BETWEEN:

(A) INTEREST AND INCOME THAT INCLUDES REVENUE EARNED, IN ACCORDANCE WITH THE ACCOUNTING AND FINANCIAL REPORTING STANDARDS OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD FOR INVESTMENTS HELD BY GOVERNMENTAL ENTITIES, FROM EXTERNAL INVESTMENT POOLS, INTEREST, DIVIDENDS, AND NET CHANGES IN THE FAIR MARKET VALUE OF INVESTMENTS ATTRIBUTABLE TO THE INVESTMENT OF THE PUBLIC SCHOOL FUND PRINCIPAL, WHETHER THOSE NET CHANGES ARE RECEIVED IN CASH; AND

(B) INTEREST AND INCOME THAT DOES NOT INCLUDE REVENUE EARNED FROM EXTERNAL INVESTMENT POOLS, INTEREST, DIVIDENDS, AND NET ATTRIBUTABLE TO THE INVESTMENT OF THE PUBLIC SCHOOL FUND PRINCIPAL, WHETHER THOSE NET CHANGES ARE RECEIVED IN CASH.

CHANGES IN THE FAIR MARKET VALUE OF INVESTMENTS

SECTION 7. In Colorado Revised Statutes, 22-41-105, add (3) as follows:

22-41-105. Income distinguished from principal.

(3) IN ACCORDANCE WITH THE ACCOUNTING AND FINANCIAL REPORTING STANDARDS OF THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD FOR INVESTMENTS HELD BY GOVERNMENTAL EXTERNAL INVESTMENT POOLS, INTEREST, DIVIDENDS, AND NET CHANGES IN THE FAIR MARKET VALUE OF INVESTMENTS ATTRIBUTABLE TO THE INVESTMENT OF THE PUBLIC SCHOOL FUND PRINCIPAL, WHETHER OR NOT THOSE NET CHANGES ARE RECEIVED IN CASH ARE INCOME AND ARE NOT PART OF THE PRINCIPAL OF THE PUBLIC SCHOOL FUND.

SECTION 8. In Colorado Revised Statutes, 22-55-103, amend with relocated provisions (7) as follows:

22-55-103. State education fund - creation - transfers to fund - use of money in fund - permitted investments - exempt from spending limitations - kids matter account - definition - legislative declaration - repeal.

(7) (a) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT, FOR THE PURPOSES OF SECTION 17 OF ARTICLE IX OF THE STATE CONSTITUTION, THE FUNDING AND PROVIDING OF WORKFORCE HOUSING IS A PROGRAM FOR ACCOUNTABLE PROGRAMS TO MEET STATE ACADEMIC STANDARDS, FOR CLASS SIZE REDUCTION, AND FOR EXPANDING THE AVAILABILITY OF PRESCHOOL AND KINDERGARTEN PROGRAMS AND MAY THEREFORE RECEIVE MONEY FROM THE STATE EDUCATION FUND CREATED IN SECTION 17 (4) OF ARTICLE IX OF THE STATE CONSTITUTION.

(b) ON NOVEMBER 1, 2026, AND EACH NOVEMBER 1 THEREAFTER, THE STATE TREASURER SHALL TRANSFER FROM THE STATE EDUCATION FUND TO THE WORKFORCE HOUSING ASSISTANCE FUND CREATED IN

SECTION 22-43.8-104 AN AMOUNT EQUAL TO THE AMOUNT CREDITED PURSUANT TO SECTION PRECEDING STATE FISCAL YEAR.

22-41-102 (3)(l) FOR THE IMMEDIATELY

SECTION 9. In Colorado Revised Statutes, 24-22-107, add (8) as follows:

24-22-107. Duties and powers of state treasurer.

(8) THE STATE TREASURER SHALL HAVE THE POWER TO ENTER INTO CONTRACTS WITH PUBLIC ENTITIES AND PRIVATE PARTIES, INCLUDING PUBLIC - PUBLIC ACQUISITION, CONSTRUCTION, IMPROVEMENT, OWNERSHIP, OPERATION, LEASING, AND LEASE-PURCHASING OF WORKFORCE HOUSING, AS DEFINED

SECTION 22-43.8-103 (15).

AND PUBLIC - PRIVATE PARTNERSHIPS, FOR THE

SECTION 10. In Colorado Revised Statutes, 24-32-705, add (1)(y) as follows:

24-32-705. Functions of division.

(1) The division has the following functions:

(y) TO PROVIDE PROFESSIONAL AND TECHNICAL SUPPORT AS DESCRIBED IN ARTICLE 43.8 OF TITLE 22 OR AS OTHERWISE REQUIRED TO THE WORKFORCE HOUSING ASSISTANCE BOARD CREATED IN SECTION 22-43.8-105, IN PARTNERSHIP WITH THE DIVISION OF PUBLIC SCHOOL CAPITAL CONSTRUCTION ASSISTANCE WITHIN THE DEPARTMENT OF EDUCATION.

SECTION 11.

Safety clause. The general assembly finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.